Kerberos setup and config problem when using SharePoint 2010

I am using SharePoint 2010 and attempting to setup Kerberos authentication, but I get continue getting prompted when logging into site.  I am converting our SharePoint portal over to Kerberos from NTLM.  Here are the steps I have taken so far:

1. Determined the app pool to be used

2. Identified the service application used for the app pool

3. Allowed delegation in AD for the service account

4. Enabled Kerberos in SharePoint 2010 under the "Authentication Providers" for the Application Pool

5. Run SETSPN command "setspn -a http/abcdev domain\service account"

6. Under "Users and Computers" in AD selected the radio buttons for Delegation "Trust this user for delegation to specified services only" and then also "Use any authentication protocol".

7. Verified the Service Principal Name using SETSPN "setspn -L domain\app pool"
   
   When attempting to log onto the development server I continue to receive the authentication prompt. I then went to the server to view the event log and found under the "Security" events:

• Audit Success - Event ID (4624) - Logon - stating logon process used Kerberos and "this event is generated when a logon session is created."Audit Success - Event ID (4634) - Logoff - "this event is generated when a logon session is destroyed"

I don't know if I am reading this correctly, but it looks as if Kerberos is authenticating or logging on successfully, but then immediately logging off. The time stamp is exactly the same time: 1/2/2013 10:43:59 AM.

Also, under the "Application" events:

• Critical - Event ID (3760) - Database - SQL Database "abc" on SQL Server Instance "1234" not found. Cannot open database requested by login for the farm account.

I presume these three events are related, however, I need help determining that. Has anyone else had issues like this with Kerberos setup and configuration using SharePoint 2010? Our network is already setup to use Kerberos.