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We use claims based authentication and have one application running, say

This application authenticates against AD via claimns provider.

We would like to deploy another web site: on the same farm and establish bi-direction single sign on. In other words, if I login into - when I navigate to any page on - I'm logged in there.

Note - since it's two different web domains - cookies won't work - we also do not want to use redirection page - it seems that if we host both apps authenticating against the same AD - there should be very easy config in SharePoint to make this happen.

Any ideas?

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Not sure SharePoint will do what you want here. Publishing the sites through a reverse proxy such as Forefront UAG, TMG, or ISA 2006/2004 will accomplish this. – shufler Jan 6 '12 at 19:37

You mention claims-mode and AD. Not sure if you are using ADFS or Integrated Windows Authentication, but it should be possible in both.

It is true that you cannot share cookies, but the identity provider should remember who you are and issue the appropriate auth cookie, subject to session expiration.

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