Windows server requires a hot fixes, later version do not Disable the feature, like stated in the MS KB article.The feature has been originally brought by Windows 2000 and is implemented is all subsequent versions of Windows. The error message might also be considered as misleading: System error 52 has occurred. It will prevent connections from being stabled to a network share or to a shared printer if the host name used is not the server’s real one. Strict Name checking is a security feature specific to the Windows implementation of the SMB protocol (File & Print sharing).
Note2: My field experience tells not to use the loopback adapter anymore for SharePoint crawler because it may also generate other issue related on security software (anti-virus, local firewall…) adding their load of security checks to the communication channel to the loopback adapter. Note: MS KB Article states you have to disable Strict Name Checking as well this is not true or at least not true if you don’t plan to use file & print sharing over the loopback adapter (see below)
You may also experience this problem when the server’s are part of an NLB cluster or when an IIS-based application accesses a SQL Server instance located on the same server using the loopback address together with Windows Authentication. It might also affect production SharePoint when the crawler process is configured to crawl from the locally-deployed WFE role thanks to a modification of the HOSTS file. When will you experience this issue? Usually, in a test/dev environment when you redirect services such as IIS web sites or SharePoint to the loopback address. Why isn’t it applicable to Kerberos authentication? Simply because Kerberos authentication is so strongly linked to names (host and service names) that is does actually need this security feature. Example with IIS: HTTP 401.1 – Unauthorized: Logon Failed. What is often misleading with LoopBackCheck is the error message making believe invalid credentials have been provided while it is actually not the case. This extra protection level applies to all incoming connections and protocols It allows protecting a Windows computer against threat exploiting connections to the loop back adapter specifically. LoopBackCheck is, like its name says, a security feature applicable to connection established to the loopback address (127.0.0.1). This post is a modest attempt to explain them more in-depth. I also regularly noticed a lot of confusion and misinformation about these. I’ve been answering technical questions in Forums and at customers for a while now and in the recent years there were many related to issue related to DisableLoopBackCheck and DisableStrictNameChecking security features from Windows.