Unable to login with Vault 2014 thin client read/write access

[DEVR5351]

I have installed Vault professional 2014 and Vault Office 2014 Server + Client on Windows server 2008 (64 bit)

I have also installed LMTOOLS utility on same machine. I have Vault office license for 5 users (attached screenshot #1)

I am able to login with default Administrator account and read only access to thin client

However when I try to login with read + write access, it says 'The username or password appears to be invalid. Please try again' (attached screenshot #2)

I have Office 2010 SP2 64 bit installed. However when I try to logon to vault using word 2010, I get different error, incompatible version (attached screenshot #3)

Could you please help me out whats going wrong?

[DEVR5351]

Update:

Enabled windows authentication.

Now nothing happens in thin client, it just waits infinitely 😞

[DEVR5351 · Accepted solution]

This is resolved.
I checked my host file and had duplicate entry for localhost like
:::1 localhost

Also removed proxy setting from IE -> Connection settings

Thanks to
http://crackingthevault.typepad.com/crackingthevault/2013/06/login-vault-problem-vault-is-not-compat...