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POS client cant connect to database if logged in user is not local admin on backoffice server

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I'm facing a problem that when the POS client tries to connect to the SQL Express instance on the backoffice server it fails to connect.

The account I'm starting the POS client with is sysadmin on the SQL instance, its member of the local group "POSUsers" and that group have correct permissions to the storedb but still it fails to connect. If I add the user to the local administrators group on the backoffice/SQL server it works. This is not a good solution, I don't want all users to be local administrators on the server. Why does the user needs to be local admin?

 

The Server logs an error:

> SSPI handshake failed with error code 0x8009030c, state 14 while
> establishing a connection with integrated security; the connection has
> been closed. Reason: AcceptSecurityContext failed. The Windows error
> code indicates the cause of failure. The logon attempt failed
> [CLIENT: 192.168.245.50]

Log from SQL error log:

> 03/09/2015 15:22:47,Logon,Unknown,Login failed. The login is from an
> untrusted domain and cannot be used with Windows authentication.
> [CLIENT: 192.168.245.50] 03/09/2015 15:22:47,Logon,Unknown,Error:
> 18452<c/> Severity: 14<c/> State: 1. 03/09/2015
> 15:22:47,Logon,Unknown,SSPI handshake failed with error code
> 0x8009030c<c/> state 14 while establishing a connection with
> integrated security; the connection has been closed. Reason:
> AcceptSecurityContext failed. The Windows error code indicates the
> cause of failure. The logon attempt failed [CLIENT: 192.168.245.50]
> 03/09/2015 15:22:47,Logon,Unknown,Error: 17806<c/> Severity: 20<c/>
> State: 14.


Log from the client trying to connect:

> LSRetailPosis.POS.Program: System.Data.SqlClient.SqlException
> (0x80131904): Login failed. The login is from an untrusted domain and
> cannot be used with Windows authentication. at
> System.Data.ProviderBase.DbConnectionPool.TryGetConnection(DbConnection
> owningObject, UInt32 waitForMultipleObjectsTimeout, Boolean
> allowCreate, Boolean onlyOneCheckConnection, DbConnectionOptions
> userOptions, DbConnectionInternal& connection) at
> System.Data.ProviderBase.DbConnectionPool.TryGetConnection(DbConnection
> owningObject, TaskCompletionSource`1 retry, DbConnectionOptions
> userOptions, DbConnectionInternal& connection) at
> System.Data.ProviderBase.DbConnectionFactory.TryGetConnection(DbConnection
> owningConnection, TaskCompletionSource`1 retry, DbConnectionOptions
> userOptions, DbConnectionInternal oldConnection, DbConnectionInternal&
> connection) at
> System.Data.ProviderBase.DbConnectionInternal.TryOpenConnectionInternal(DbConnection
> outerConnection, DbConnectionFactory connectionFactory,
> TaskCompletionSource`1 retry, DbConnectionOptions userOptions) at
> System.Data.ProviderBase.DbConnectionClosed.TryOpenConnection(DbConnection
> outerConnection, DbConnectionFactory connectionFactory,
> TaskCompletionSource`1 retry, DbConnectionOptions userOptions) at
> System.Data.SqlClient.SqlConnection.TryOpenInner(TaskCompletionSource`1
> retry) at
> System.Data.SqlClient.SqlConnection.TryOpen(TaskCompletionSource`1
> retry) at System.Data.SqlClient.SqlConnection.Open() at
> LSRetailPosis.Settings.Database.CheckDatabaseExistence() at
> LSRetailPosis.Settings.Database.CheckDatabaseSettings() at
> LSRetailPosis.Settings.ApplicationSettings.InitializeSettings(String[]
> args) at LSRetailPosis.POS.Program.InitializeAndLoadPOS(String[]
> args, Boolean owned, SplashScreenForm splashScreenForm) at
> LSRetailPosis.POS.Program.Main(String[] args)
> ClientConnectionId:d57c7fd9-4a47-41b7-af07-ed93627d2930.

Its all in same domain and using domain accounts. 

Windows Autentication is used for login. 
Shouldnt be problem with the connectivity to the DC. 
Named instances name is used (it works if the domain user is local admin).


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