>We are trying to establish a linked server to a legacy VFP 9 database from within SQL Server 2008. The issue we are having is that the application connection is hopping two servers to get to the data and the NTLM authentication doesn't allow this. We have not been able to successfully implement Kerberos Authentication so far and any help would be appreciated.

Maybe you could work around it by establishing a VPN between the machine hosting the SQL 2008 instance, and the one with the VFP data files. It might seem a little odd if it's all on your intranet, but hey, if it works...