Login failed. The login is from an untrusted domain and cannot be used with Windows authentication.

Hello,
I have gone through couple of posts regarding this issue but couldn't get the right solution. Could you please help what exactly we are missing here.
Details:
1) we have two SQL instances on one standalone machine (Default Instance (2008 SP3) + Named Instance (SQL 2012 SP1))
2) Both instances are configured to accept SQL+ Windows authentication.
3) when we give access to our users they are getting following exception if they connect with 'windows authentication'. (For both instances)
Login failed. The login is from an untrusted domain and cannot be used with Windows authentication.
Note: (Being a sys + windows admin I'm able to connect both the instances from same client machine without
any issues)
4) Also, we observed following error in windows application event log,
 SSPI handshake failed with error code 0x8009030c, state 14 while establishing a connection with integrated security; the connection has been closed. Reason: AcceptSecurityContext failed. The Windows error code indicates the cause of failure.
The logon attempt failed   [CLIENT: 192.168.xxx.xyx]
5) If we create SQL login it is working fine without any issues.
Could someone guide/help  me identifying and fixing this issue.
Thank you

Hello,
Are those Windows Logins associated to domain Windows accounts? Windows Logins work for domain accounts and local Windows account created on the server where the SQL Server instance is installed (and used to login locally to the server).
Could you try to delete one of the Windows logins that fail to login , and try to recreate them?
The following resources may help:
http://blogs.msdn.com/b/dataaccesstechnologies/archive/2012/12/19/error-message-quot-login-failed-the-login-is-from-an-untrusted-domain-and-cannot-be-used-with-windows-authentication-quot.aspx
http://support.microsoft.com/kb/555332
Hope this helps.
Regards,
Alberto Morillo
SQLCoffee.com

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