Please check whether Basic Authentication is enabled on sp.lkp.com:80 or not?
Should Basic Authentication be enabled as well even if I opt to use NTLM or Kerberos authentication?
I will check if it is enabled when I have a chance to check tomorrow.
Yes, Basic authentication should be enabled for SharePoint 2010. For MOSS 2007 NTLM should also work as it uses NTLM v1 but sharepoint 2010 uses NTLM v2 which is not supported by the connector yet.