Installation issue with SDL Tridion 2013 & SDL Web 8 CME not loading all items properly

Question

I have upgrade our existing SDL Tridion 2011 SP1 + HR1 environment to SDL Tridion 2013. While validating the new CME I am getting following error continuously in the "Notifications" section

The remote server returned an error: (401) Unauthorized.
at System.Net.HttpWebRequest.GetResponse()
at System.ServiceModel.Channels.HttpChannelFactory.HttpRequestChannel.HttpChannelRequest.WaitForReply(TimeSpan timeout)

The new GUI does not load all the items properly; this could be because of above error but it does loads items when I select "Refresh" option from the context menu. And on the IE browser it is throwing a JavaScript error with the following message:

Webpage error details
User Agent: Mozilla/4.0 (compatible; MSIE 8.0; Windows NT 6.1; WOW64; 
            Trident/4.0; SLCC2; .NET CLR 2.0.50727; .NET CLR 3.5.30729;
           .NET CLR 3.0.30729; InfoPath.3; .NET4.0C; .NET4.0E)
Timestamp: Thu, 18 Apr 2013 06:30:23 UTC

Message: Error:

The remote server returned an error: (401) Unauthorized.
Line: 76
Char: 1579
Code: 0
URI: http://sdltridion.abc.com/WebUI/Core/coreresource_v7.0.0.568.8_.js?sav=1&cnt=core*

Answer 1

This issue occurs when the Web site uses Integrated Authentication and has a name that is mapped to the local loopback address. Follow the below URL and disable the loopback check

http://support.microsoft.com/kb/896861