Anyone know quite a bit about Kerberos and VMs and NLB that I can bounce some stuff off of? I'll post it here... but didn't want to go through formulating the post if there wasn't a sufficient mindshare to even have a hope of getting an answer 


StackOverflow mentions:
in IIS > 7, I had to add "useAppPoolCredentials = true" to the application's configuration in order to have everything work as expected. Without that configuration element, all authentication was broken.
The situation described at the link has an image indicating the problem...which on first glance matches with your description. Perhaps the suggestion above could be of any help?
External RDP Logon Failures: Audit Failure Event 4625 – Status Code: 0x000035B
Resolution Options:
Method 1:
Adjust the LmCompatibility registry value not to force NTLMv1 by setting it to a value of 3 or larger.
For more information about the LmCompatibility registry value, see included file: LmCompatibilityLevel.pdf
Method 2 (Currently Used in Lab Configuration):
Set the EnforceChannelBinding registry value to 0 (zero) to ignore missing channel bindings on the Gateway server. To do this, locate the following registry subkey, and use the given specifications:
HKLM\Software\Microsoft\Windows NT\CurrentVersion\TerminalServerGateway\Config\Core
Type: REG_DWORD
Name: EnforceChannelBinding
Value: 0 (Decimal)
Note: By default, the EnforceChannelBinding value does not exist on the Gateway server. You must create this value.
Original address: https://www.donationcoder.com/forum/index.php?topic=42263.0