This issue will come when deploying the application in a two-tier configuration, when MOSS/Commerce Server and SQL Server are installed on different computers. With the two-tier configuration, if you are required to use Kerberos authentication and to specifically grant client user access to the Commerce Server SQL databases. This configuration was triggering problems when integrating with the FAST SharePoint Connector for indexing the site.
Without the Hot fix, the authentication scenario in place is the “double-hop” authentication issue, where the client user identity needs to be delegated from the Web server to the SQL server (to access the databases). Therefore Kerberos authentication is required because NTLM cannot delegate the user. After installing the Hot fix, you can able to successfully access the site with NTLM authentication, and the site uses IIS Application Pool identity to access the commerce server SQL databases. This is important because using Kerberos authentication is a good practice and desirable for security and performance reasons. Thanks Roger for pointing to this hot fix.
The hot fix is available in MS support site and click below link to download it.
http://support.microsoft.com/default.aspx/kb/975603
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