It's not really that clear, but it's true, you must have SSO configured on your SharePoint application server or another Microsoft server in order for the BDC to function properly. I'm sure there's ways around this but I haven't found any so without further ado let's see how to do it.
Step 1 - Configure the Microsoft Single Sign On Service
Locate the Microsoft Single Sign On Service (Start > Programs > Administrative Tools > Services)
Set the Single Sign On Service to start aut...