IIS to Sql Server Login Failed when not on same domain

Thats happened a few time already (over the past few years). IIS likes to know who you are before it lets you talk to SQL server. So a nice blog here if you are connecting to a Sql Server db from IIS and the two machines are not under the same AD domain.

http://beyondthispoint.blogspot.com/2006/04/setting-up-iis6-application-pool.html

Do the steps, it works! This post is like an extended book mark!

Can we get any more virtual ?

I am stuck with the virtualization question for a bit. To virtualize or not ? Have to.. its in the work I do. So here is a little list. Help me fix it, but I'll throw it in for a start:

I want to..	So ..
Develop on my Win XP/Vista/2003 machine or laptop.	Use VMWare Workstation. Why? You get much better interactive performance when developing.
Keep my personal and business stuff separate from my everchanging-upgrading-munging development work stuff	The host keeps all your basic apps - email, business, skype, fun, etc so you don't have to run vmware to access 'everything'. The host can also run the main dev db server and subversion (cause it's just faster I/O). But its in the background (right!).
Setup my VM for development	Use VMWare Workstation to run a development IDE in a Win2003/8 VM.
Test with my VMWare	Use VMWare Workstation to run as a test server in Win2003/8 VM. Real benefit is you can take a snapshot of your test vmachine and/or create a virtual test environment to handle an n-tier emulation, i.e web server+app server+db server. Just try to keep the test data (files+dlls + dbs) de-coupled from the Test VM so you can just roll back to the full Test VM for a new test run. If you have spare hardware use you can VMWare server 2.0 as it can run the stuff in the background and you can access it from your main terminal (laptop, etc). But then you need to consider setting up DNS/DHCP somewhere. Still prefer the VMware Workstation all-in-one setup.