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Microsoft has written a step-by-step instructional for setting up a proof of concept lab to demonstrate NAP with 802.1X on the new Windows 2008 NPS. NPS on Windows 2008 replaces IAS on Windows 2003, and new Network Access Protection functionality is now built in. The guide can be downloaded from here: http://www.microsoft.com/downloads/details.aspx?FamilyID=8a0925ee-ee06-4dfb-bba2-07605eff0608&displaylang=en.  The guide is very detailed and easy to follow, but there’s one catch: it’s written for Vista, and there are differences from the way 802.1X authentication works on XP.  I got it working by compiling information from several sources and updating the step-by-step document with the changes.  Here, I will tell you what edits I made, so you can do the same.

On page 19, under Top Level Heading: Install the Group Policy Management feature
The heading below it should read:
“To install the Group Policy Management feature,”
not:
“To install the NPS server role.”

On page 25, under Heading: Verify NAP policies, in the numbered list under “To verify NAP policies”
2. reads:
“Verify that the NAP connection request policy you created in the previous procedure is first in the processing order, or that other policies that match NAP client authentication attempts are disabled. Also verify that the status of this policy is Enabled. The default name of this policy is NAP 802.1X (Wired). ”

Add to that: “Open the policy and navigate to Settings > Authentication Methods.  Make sure Override network policy authentication settings is checked and that under EAP types, Microsoft: Protected EAP (PEAP) is shown.”

In the section starting on page 26, under the Top Level Heading: Configure NAP client setting in Group Policy, under “To configure NAP client settings in Group Policy:”
between steps 12 and 13, insert the following:
13.  In the console tree, navigate to Computer Configuration\Windows Settings\Security Settings\Network Access Protection\NAP Client Configuration\Enforcement Clients.
14.  In the details pane, right-click each enforcement client you want to enable, and then click Enable.
15.  In the console tree, navigate to Computer Configuration\Windows Settings\Security Settings\Wired Network (IEEE 802.3) Policies.
16.  Right-click the Wired Network…and click Create a New Windows Vista Policy.  Name the policy, and make sure Use Wired AutoConfig is checked.
17.  Click on the security tab and Enable IEEE 802.1X… and for Select and network authentication method, select Microsoft: Protected EAP (PEAP).
18.  Click Properties… and make sure Validate server certificate is checked.  Also check Enable Fast Reconnect and Enable Quarantine checks.  Select Authentication Method should show Secured password (EAP-MSCHAP v2).  Click OK.

Side note: As I was troubleshooting, the NPS log in the expanded Windows 2008 Event Viewer was invaluable to tracking down issues.  You no longer have to read IAS format logs for basic troubleshooting.

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