Can't define Dyn Rec within Publication using windows authentication

Our company is converting to SQL. We’re using Windows Authentication, when we hadn’t before, for logins to run reports against our reporting server. This is on BOXI 4.2 SP 7.

We’re able to run reports with this method without any issues. The problem is with defining publications. We’re able to define the source doc without issues but when we try to bring the dynamic recipient report into the publication, we’re getting an error saying '‘please check that ‘use same database log on as when report is run option is set on dynamic recipient document’’.

The option is definitely chosen within the dynamic recipient report. I’m even able to run it as a standalone report with the windows authentication and it completes. It just will not allow itself to be defined within the publication.

Any ideas? The synchronization of credentials is checked within the Windows active directory tab within authentication.