sqlreader's questions

I have a Windows 2008 Std server running NPS. After applying the latest round of updates (including Root Certificates for April 2012 KB931125 (See:http://support.microsoft.com/kb/933430/)), EAP authentication is failing due to being malformed.

Sample error (Security/Event ID 6273), truncated for brevity:

Authentication Details:
        Proxy Policy Name:              Use Windows authentication for all users
        Network Policy Name:            Wireless Access
        Authentication Provider:                Windows 
        Authentication Server:          nps-host.corp.contoso.com
        Authentication Type:            PEAP
        EAP Type:                       -
        Account Session Identifier:             -
        Reason Code:                    266
        Reason:                         The message received was unexpected or badly formatted.

The NPS policy (Wireless Access) is configured accordingly (for Constraints/Authentication methods)

EAP Types:
            Microsoft: Protected EAP (PEAP) - with a valid certificate from ADCS
            Microsoft: Secured password (EAP-MSCHAP v2)
Less secure authentication methods:
            Microsoft Encrypted Authentication version 2 (MS-CHAP-v2)
            User can change password after it has expired
            Microsoft Encrypted Authentication (MS-CHAP)
            User can change password after it has expired

We've tested a different RADIUS server without the aforementioned patch, and removed EAP as an authentication type and experienced success.

Has anyone else experienced this issue?

The default SQL Trace of my instances shows the following issue for native SQL logins (non-domain accounts):

Network error code 0xe8 occurred while establishing a connection; the connection has been closed. This may have been caused by client or server login timeout expiration. Time spent during login: total 18230 ms, enqueued 2 ms, network writes 5 ms, network reads 128 ms, establishing SSL 71 ms, negotiating SSPI 0 ms, validating login 18096 ms. [CLIENT: ]

I've done some digging and haven't been able to find what tolls to use or metrics to gather to better assign the login validation performance issue.

This is SQL Server 2005 with Service Pack 3 on Windows 2003 R2 with Service Pack 2 on VMware 4.1.0 with the latest VMware tools installed.