Let’s see; when you try to run an index within SharePoint 2007 it should work as advertise right? Well there is this topic and fix called, the loop back bug.
Below is the registry hack to get around the issue. I apply this to all SharePoint 2007 WFE’s.
How to prevent a double loop back when authenticating against a local server Internet Explorer instance of SharePoint: (Here is the link to the Microsoft Knowledge Article.)
- Go to Start, Run, and type, “regedit”
- Navigate HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa
- Right-click Lsa, point to New, and then click DWORD Value.
- Type DisableLoopbackCheck, and then press ENTER.
- Right-click DisableLoopbackCheck, and then click Modify.
- In the Value data box, type 1, and then click OK.
- Quit Registry Editor