Unable to set SQL Server Windows Authentication

[MarthinusBosman]

Problem

I've been trying to set up django-windowsauth using all the steps in the Installation guide, and the app is up and running. Problem is that my database connection is a SQL Server instance that used to connect as my domain user using windows authentication, but now through the IIS server it constantly connects using DOMAIN\\MACHINE_NAME$, even though I've set up IIS to connect as my domain user.

Already tried

I've tried to find help on this, like adding the following settings to web.config, which does nothing:

<system.web>
  <identity impersonate="true"/>
</system.web>

I've tried to follow along with This thread that seems to have the same issue, but can't really make sense of what the actual solution is / if he was able to find a solution.