The Windows Authentication information should be getting passed from the browser running on the client through to the server, and it is this domain/user that should be added to the User Management site. When you say the 'local machine administrator' needed to be added, which machine are you referring to: the client machine, or the web server? Also, what browser is being used to access TeamPulse? Are you prompted for credentials within the browser when hitting TeamPulse, or is it automatically pulling them through (which would most often occur within Internet Explorer)?
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