No credentials found error while configuring SSO

Hello,

Im trying to configure SSO on SUP 2.1.3 sp2 by following http://scn.sap.com/docs/DOC-27046 article and while i try to ping my connection profile im getting following error  in SCC:

Has anyone faced same problem ? What i wonder is do we need to make SNC active on SAP side ?

Thanks in advance

Tahir ÖZ