Web service 401 error

This is probably a common problem here in the forums, but i have a little twist.
I have set up a 3-tier architecture. I have two different services i use for dynamics nav role based connection. I have also set up two web services connecting to the two different dynamics nav servers. The first one is a demo database which i got the web service installed during installation. The second one is added manually. They are both on the same computer and the same users, windows logon, are added to the databases.
I am able to consume the web services published from the demo database, but not the other. I get a 401: Unauthorized error. The whole stack trace can be seen under.

Event message: An unhandled exception has occurred. 
Event time: 06.12.2011 12:56:20 
Event time (UTC): 06.12.2011 11:56:20 
Event ID: e53d11a38a4c4f8abb58641ed45e95f8 
Event sequence: 4 
Event occurrence: 1 
Event detail code: 0 
 
Application information: 
    Application domain: /LM/W3SVC/1/ROOT-12-129676461803274078 
    Trust level: Full 
    Application Virtual Path: / 
    Application Path: C:\inetpub\wwwroot\ansattportal\ 
    Machine name: SERVER2 
 
Process information: 
    Process ID: 4300 
    Process name: w3wp.exe 
    Account name: NT AUTHORITY\NETWORK SERVICE 
 
Exception information: 
    Exception type: TargetInvocationException 
    Exception message: Exception has been thrown by the target of an invocation.
   at System.RuntimeMethodHandle._InvokeMethodFast(IRuntimeMethodInfo method, Object target, Object[] arguments, SignatureStruct& sig, MethodAttributes methodAttributes, RuntimeType typeOwner)
   at System.Reflection.RuntimeMethodInfo.Invoke(Object obj, BindingFlags invokeAttr, Binder binder, Object[] parameters, CultureInfo culture, Boolean skipVisibilityChecks)
   at System.Reflection.RuntimeMethodInfo.Invoke(Object obj, BindingFlags invokeAttr, Binder binder, Object[] parameters, CultureInfo culture)
   at System.Web.UI.WebControls.ObjectDataSourceView.InvokeMethod(ObjectDataSourceMethod method, Boolean disposeInstance, Object& instance)
   at System.Web.UI.WebControls.ObjectDataSourceView.ExecuteSelect(DataSourceSelectArguments arguments)
   at System.Web.UI.WebControls.ListControl.OnDataBinding(EventArgs e)
   at System.Web.UI.WebControls.ListControl.PerformSelect()
   at System.Web.UI.WebControls.BaseDataBoundControl.EnsureDataBound()
   at System.Web.UI.WebControls.ListControl.OnPreRender(EventArgs e)
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Page.ProcessRequestMain(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)

The request failed with HTTP status 401: Unauthorized.
   at System.Web.Services.Protocols.SoapHttpClientProtocol.ReadResponse(SoapClientMessage message, WebResponse response, Stream responseStream, Boolean asyncCall)
   at System.Web.Services.Protocols.SoapHttpClientProtocol.Invoke(String methodName, Object[] parameters)
   at Customer.Customer_Service.ReadMultiple(Customer_Filter[] filter, String bookmarkKey, Int32 setSize)

 
 
Request information: 
    Request URL: http://server2/test.aspx 
    Request path: /test.aspx 
    User host address: fe80::7987:3616:89c2:ecc6Full 
    User: (Removed\username)
    Is authenticated: True 
    Authentication Type: Negotiate 
    Thread account name: NT AUTHORITY\NETWORK SERVICE 
 
Thread information: 
    Thread ID: 27 
    Thread account name: NT AUTHORITY\NETWORK SERVICE 
    Is impersonating: False 
    Stack trace:    at System.RuntimeMethodHandle._InvokeMethodFast(IRuntimeMethodInfo method, Object target, Object[] arguments, SignatureStruct& sig, MethodAttributes methodAttributes, RuntimeType typeOwner)
   at System.Reflection.RuntimeMethodInfo.Invoke(Object obj, BindingFlags invokeAttr, Binder binder, Object[] parameters, CultureInfo culture, Boolean skipVisibilityChecks)
   at System.Reflection.RuntimeMethodInfo.Invoke(Object obj, BindingFlags invokeAttr, Binder binder, Object[] parameters, CultureInfo culture)
   at System.Web.UI.WebControls.ObjectDataSourceView.InvokeMethod(ObjectDataSourceMethod method, Boolean disposeInstance, Object& instance)
   at System.Web.UI.WebControls.ObjectDataSourceView.ExecuteSelect(DataSourceSelectArguments arguments)
   at System.Web.UI.WebControls.ListControl.OnDataBinding(EventArgs e)
   at System.Web.UI.WebControls.ListControl.PerformSelect()
   at System.Web.UI.WebControls.BaseDataBoundControl.EnsureDataBound()
   at System.Web.UI.WebControls.ListControl.OnPreRender(EventArgs e)
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Control.PreRenderRecursiveInternal()
   at System.Web.UI.Page.ProcessRequestMain(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)
 
 
Custom event details: 

EDIT: The databases and the services is on the same computer. Connecting with a seperate computer