K2 Workspace site machine name does not work

Hi,

I have installed K2 on my machine.  When I try to navigate to the K2 Workspace site using htt://machinename:port I get an authentication error and it keeps prompting me for username and passwords.  The security log reveals the following

 Logon Failure:

  Reason: Unknown user name or bad password

  User Name:

  Domain:

  Logon Type: 3

  Logon Process: Kerberos

  Authentication Package: Kerberos

  Workstation Name: -

  Caller User Name: -

  Caller Domain: -

  Caller Logon ID: -

  Caller Process ID: -

  Transited Services: -

  Source Network Address: 192.168.0.95

  Source Port: 1423

For more information, see Help and Support Center at 

However if I use  htt://localhost:port then it works.  Does anyone have any idea on how to resolve this.

Thanks

Arjuna.