I just ran across this problem and it wasn't something I would ever think was the issue. I had to create three registry entries on the web server and restart the server for the changes to take affect.
This issue may occur when the user is a member of many Active Directory user groups. When a user is a member of a large number of active directory groups the Kerberos authentication token for the user increases in size. The HTTP request that the user sends to the IIS server contains the Kerberos token in the WWW-Authenticate header, and the header size increases as the number of groups goes up. If the HTTP header or packet size increases past the limits configured in IIS, IIS may reject the request and send this error as the response.