We are successfully running or corporate Intranet using PHP under IIS 7.5 on Win Server 2008 R2. We used Web Platform Installer to setup PHP. Impersonation worked right from the start but delegation was not configured.
It is my understanding that "impersonation", sometimes called single hop, takes the access token from the client workstation and uses it to run the script on the web server, ie the first hop. The rub comes when the app wants to read/write files on a network file share. It is my further understanding "delegation", sometimes called "double hop" takes the same access token and passes it to the web server (the second hop) for use in accessing the remote files. Delegation is not working. I have read in many places that delegation is what I need but can not find instructions on how to enable it in IIS 7.5.