Warning MDT 2012 Issues with NTLM If You Allow Apply Local GPO Package
A warning for everyone looking at MDT 2012, there is a new task sequence step called "Apply Local GPO Package". If you let this run it sets the security too high to use NTLM with proxies and probably some Samba shares as well. I tried undoing some of the settings in the local policy but it didn't do any good.
I found this out after building a new reference image and I couldn't get the internet to work on IE, Chrome or Firefox. Firefox actually gave me the error message I needed to investigate further though. My Smoothie did look like it was authenticating in the log but obviously not.
Disable the step in all your task sequences or set
under the rules tab for the deployment share (Customsettings.ini)
Hopefully this will save some people the serious hair pulling session I had yesterday :doh: