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When configuring SharePoint 2007 Search settings I get the following error when starting a Full Crawl. I original thought the fix for this was related to Windows Server 2008 but I later found out that it seems to be related to the .NET Framework 3.5. Anyhow, here is the resolve that I have found on the web.
Disable the loopback check
Follow these steps:
1. Click Start, click Run, type regedit, and then click OK.
2. In Registry Editor, locate and then click the following registry key:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa
3. Right-click Lsa, point to New, and then click DWORD Value.
4. Type DisableLoopbackCheck, and then press ENTER.
5. Right-click DisableLoopbackCheck, and then click Modify.
6. In the Value data box, type 1, and then click OK.


