And are both these computers members of the same domain?

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No, the machines are not part of any domain. The company doesn't have the domain infrastructure in place. Standard installs of operating systems only.

The older machines which have been replaced were also standard installs with no domain infrastructure.

OK, so if the two machines are entirely separate and youre using SQLS in Windows Authentication mode, what steps have you taken to ensure that the credentials presented by box A will be accepted by box B as being valid for logging into the database and carrying out queries?

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I am using Integrated Security = True in the connection string, which means that the account that has been used to log on to the machine hosting the SQL Server will be used to logon to the SQL Server.

The logon mode for SQL Server is also set to Windows Authentication mode only.

Yes, but youre having problems connecting from a REMOTE machine, that doesnt have that account used to log into the server because it's not part of a domain!

ServerPC
user/pass=bob/secret

ClientPC
user/pass=joe/passpass


CLient PC comes along wanting to connect to SQLS, says "Hi, I'm username Joe", and ServerPC says "Who?"
What steps have you taken to ensure this doesnt happen?

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You don't need to know the account for logging into the SQL Server remotely when integrated security is used. The account detail is inserted and used by the machine itself when the packet reaches it. The server machine will recognise the account details that have been used to logon for that particular session?

So a SQL Server in Integrated Security/Windows Auth mode will let any Tom, Dick or Harry access it, because it just magically inserts an administrator login and password when the remote user attempts to connect?

I'm curious to know what is secure about this security?

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*sarcasm detected*
Yes, you somehow do because you need to configure network and server accounts before this will happen. If the remote account is not recognised as a windows account at server machine it will also not allow it to access the SQL server. Integrated security is simpler when user is already authenticated in network with windows logon credentials, because then user has strong authentication and doesn't need to go through yet another login system with the SQL server.

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That's how integrated security in SQL Server works. What is secure about this security method is a different issue. The problem now is unable to connect remotely. I am wondering if I am the only one who ran into this problem?

JohnH: That's what is happening in my case. Administrator is logged on to the machine when I am trying to connect to it, which means that the connection from my application will use that (Administrator) account while trying to logon to SQL Server? But still it is failing.

On a side note I would like to mention that this is how the previous setup was done, there is no change except the hardware and software upgrade of machines.