TC 7.1 throws SSO error while connecting to perforce

I am using TC 7.1 on win7. Both server and agent runs under local system account. Setting up VCS root for perforce using my credentials gives Single-sign on error. I am able to connect to perforce using P4V on my machine. Is there any other setting that needs to be done like env. variable, etc.

Below is the stack trace.

Failed for the root 'perforce: xxxxx' #9: Login invalid.
'Single sign-on' validation failed: Failed to validate user credentials.

stack trace:

jetbrains.buildServer.vcs.VcsException: Login invalid.
'Single sign-on' validation failed: Failed to validate user credentials.

at jetbrains.buildServer.vcs.perforce.PerforceConnection.runCommand(PerforceConnection.java:273)
at jetbrains.buildServer.vcs.perforce.PerforceConnection.tryToLogin(PerforceConnection.java:307)
at jetbrains.buildServer.vcs.perforce.PerforceConnection.runCommand(PerforceConnection.java:259)
at jetbrains.buildServer.vcs.perforce.PerforceConnection.runCommand(PerforceConnection.java:311)
at jetbrains.buildServer.vcs.perforce.PerforceConnection.access$000(PerforceConnection.java:35)
at jetbrains.buildServer.vcs.perforce.PerforceConnection$1.getNewValue(PerforceConnection.java:435)
at jetbrains.buildServer.vcs.perforce.PerforceConnection$1.getNewValue(PerforceConnection.java:431)
at jetbrains.buildServer.util.UptodateValue.getValue(UptodateValue.java:65)
at jetbrains.buildServer.vcs.perforce.PerforceConnection.getCurrentChangesCommandOutput(PerforceConnection.java:456)
at jetbrains.buildServer.vcs.perforce.PerforceConnection.runGetCurrentVersionCommand(PerforceConnection.java:406)
at jetbrains.buildServer.vcs.perforce.PerforceConnection.getCurrentVersion(PerforceConnection.java:401)
at jetbrains.buildServer.vcs.perforce.PerforceSupport.getCurrentVersion(PerforceSupport.java:88)
at jetbrains.buildServer.vcs.impl.VcsRootInstancesManagerImpl$SVcsRootInstance.getCurrentRevision(VcsRootInstancesManagerImpl.java:77)
at jetbrains.buildServer.vcs.impl.VcsRootInstancesManagerImpl$SVcsRootInstance.getCurrentState(VcsRootInstancesManagerImpl.java:63)
at jetbrains.buildServer.vcs.impl.VcsChangesLoaderImpl.getCurrentState(VcsChangesLoaderImpl.java:10)
at jetbrains.buildServer.vcs.impl.VcsChangesLoaderImpl.access$200(VcsChangesLoaderImpl.java:279)
at jetbrains.buildServer.vcs.impl.VcsChangesLoaderImpl$6.run(VcsChangesLoaderImpl.java:3)
at jetbrains.buildServer.util.NamedThreadFactory.executeWithNewThreadName(NamedThreadFactory.java:117)
at jetbrains.buildServer.vcs.impl.VcsChangesLoaderImpl.doCollectStates(VcsChangesLoaderImpl.java:229)
at jetbrains.buildServer.vcs.impl.VcsChangesLoaderImpl.collectStatesForAllRoots(VcsChangesLoaderImpl.java:101)
at jetbrains.buildServer.vcs.impl.VcsChangesLoaderImpl.getLoadChangesIntervals(VcsChangesLoaderImpl.java:141)
at jetbrains.buildServer.vcs.impl.VcsChangesLoaderImpl.loadChangesNoLocking(VcsChangesLoaderImpl.java:138)
at jetbrains.buildServer.vcs.impl.VcsChangesLoaderImpl.tryLoadChanges(VcsChangesLoaderImpl.java:224)
at jetbrains.buildServer.serverSide.impl.VcsModificationChecker$1$1.run(VcsModificationChecker.java:2)
at jetbrains.buildServer.util.NamedThreadFactory.executeWithNewThreadName(NamedThreadFactory.java:117)
at jetbrains.buildServer.serverSide.impl.VcsModificationChecker$1.run(VcsModificationChecker.java:1)
at java.util.concurrent.Executors$RunnableAdapter.call(Unknown Source)
at java.util.concurrent.FutureTask$Sync.innerRun(Unknown Source)
at java.util.concurrent.FutureTask.run(Unknown Source)
at java.util.concurrent.ThreadPoolExecutor$Worker.runTask(Unknown Source)
at java.util.concurrent.ThreadPoolExecutor$Worker.run(Unknown Source)
at java.lang.Thread.run(Unknown Source)

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