User has to have an attribute TRUSTED_TO_AUTH_FOR_DELEGATION in order for it to be able to authenticate to the remote service.
TRUSTED_TO_AUTH_FOR_DELEGATION - (Windows 2000/Windows Server 2003) The account is enabled for delegation. This is a security-sensitive setting. Accounts that have this option enabled should be tightly controlled. This setting lets a service that runs under the account assume a client's identity and authenticate as that user to other remote servers on the network.