Yes I do have SLL client installed for SNC to work. I actually just got it working and it was a combination of the items you and Matthias mentioned, as well as clearing all tokens with klist and then also the SAP user was locked (stupid I know).
Thanks for everyone's responses and help on this one. It doesn't seem like this SDN post is marked as a question, so I'm not able to award points, but if someone can advise I will gladly award points for the excellent help.
Thanks again to a community that collaborates and helps in such a manner!
Johan