Unable to open SCOM Web Console from a PC

RMS – SCOM 2007 R2 RU5 on Windows 2008 R2 SP1
SCOM Reporting - SQL 2008 R2 on Windows 2008 R2 SP1
IE9 on Windows 7

I installed the SCOM web console on RMS and was able to access it from SCOM itself, but when I tried to open it from my PC, I got a logon prompt which did not accept my plain and domain admin users credentials.

After 3 attempts, IE displays a message:

You do not have permission to view this directory or page

Kevin Holman explains in his article Installing the Web Console on a 2008 Management Server - using Windows Authentication that we need to set the following properties in the AD computer account of the server running the SCOM web console:

For Windows 2008: Trust this computer for delegation to any service (Kerberos)

For Windows 2003: Trust this computer for delegation to specified service only, then select Use Kerberos only and add the SDK account.

But this did not fix the issue in my case. I found in this thread on MS discussions that the identity of SCOM's application pool needs to be changed to the SDK account, but when I tried it, I got an error:

Bad Data (Exception from HRESULT: 0x80090005)

I found the explanation of the issue in Caution while xcopying IIS 7.0 config files and tried setting the identity to Local System account and recycling the application pool, and that finally fixed the issue.