Unable to register geodatabase with ArcGIS Server

[BrettS]

My Problem:
When I tried to publish a feature service to the server using OS authentication.  I received Error 00090: Feature service requires a registered database.  When I tried registering a connection to the geodatabase using OS authentication I received an error saying "Machine: <machine name>[<connection name>: The connection property set was missing a required property or the property value was unrecognized.  Bad login user]".

My Setup:
My geodatabase is SQL Server 2008 R2.  I'm using ArcMap 10.2 and ArcGIS for server 10.2.  I created my geodatabase using the "Create Enterprise Geodatabase" tool and I created it with an SDE-owned schema.  I created two users with the "Create Database User" tool.  One of them was a SQL authenticated user and the other was my OS authenticated user.  I assigned both of them the same role and both logins are capable of connecting to the geodatabase and can create/edit datasets and feature classes properly.

My Confusion:
The SQL authenticated user can register a connection to the geodatabase on the ArcGIS server, however, for some reason, the OS authenticated user cannot.  Are there some extra permissions I need to give my OS authenticated user in order for it to be able to register a geodatabase?

[NidhinKarthikeyan · Accepted solution]

While using OS authenticated user, you have  to add the ArcGIS Server account to the geodatabase, then grant it permissions to the resource that it needs to access. When the service runs, it will log in to the DBMS as the ArcGIS Server account.  The way that you add the ArcGIS Server account and grant it permissions varies depending on what type of ArcSDE geodatabase you are using:

If you're working with an ArcSDE geodatabase (enterprise), the way that you add the ArcGIS Server account as a valid user of the database varies depending on the DBMS that you are using. You may find it helpful to consult your DBMS documentation to learn how to grant access to an operating system account.

Making your data accessible to ArcGIS Server:
http://resources.arcgis.com/en/help/main/10.1/index.html#//01540000039r000000

Once you've added the ArcGIS Server account, you need to grant it SELECT permissions to the resource that you are going to publish. Additional permissions may be necessary if you will be editing data.
Permissions for database servers.