SP Local Logon Problem

Sharepoint Problem with Local Logon on SP Server.

Solution:
http://support.microsoft.com/kb/971382

Method 1: Specify host names

Note We recommend that you use this method.

To specify the host names that are mapped to the loopback address and can connect to Web sites on your computer, follow these steps:
Click Start, click Run, type regedit, and then click OK.
In Registry Editor, locate and then click the following registry key:
HKEY_LOCAL_MACHINE\System\CurrentControlSet\Control\Lsa\MSV1_0
Right-click MSV1_0, point to New, and then click Multi-String Value.
Type BackConnectionHostNames, and then press ENTER.
Right-click BackConnectionHostNames, and then click Modify.
In the Value data box, type the host name or the host names for the sites that are on the local computer, and then click OK.
Exit Registry Editor, and then restart your computer.
Method 2: Disable the loopback check
Click Start, click Run, type regedit, and then click OK.
In Registry Editor, locate and then click the following registry key:
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.
Exit Registry Editor, and then restart your computer.