WCF 'A Call to SSPI Failed, see inner exception'

Thanks tomasr, it was a misconfigured SPN.

Too bad there's no functionality on this site to close your own question, I'll have to wait 2 days to choose this one :-)

Thanks again!

i removed identity element from config for local testing when i was not connected to domain. It works.

reference -

http://blogs.msdn.com/b/jpsanders/archive/2010/10/14/wcf-client-inner-exception-quot-the-security-support-provider-interface-sspi-negotiation-failed-quot.aspx