Here’s a nice simple diagram below, which explains the differences between NTLM and Kerberos Authentication in TMG/ISA
To Note:
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WPAD on TMG/ISA is set to NTLM by default
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You can change this by using the script in the following blog
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http://support.risualblogs.com/blog/2011/07/01/auto-detect-not-working-via-wpad-in-ie-via-tmg/
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