When I select 'Be made using this security context' (on the Linked Server Security tab) and enter the details of a sql server account the linked server works correctly. However when I change this to a domain NT Account which has sa permissions on the remote box I recieve the following error:
Error 18456: Login failed for user etc.
This is strange as when 'Be made using the login's current security context' The domain NT Account will connect - suggesting Kerberos is configured correctly.
What type of account you used to run SQL Server Service and agent? Our our linked environment some are set to local SQL account 'Be made using this security context:' and assign an account with an SA account. Or you can change by 'local server login to remote server login mappings' with impersonate.
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