Hey Guys,
Sorry this one fell off of my radar completely. We ended up reverting to an older client.
But to answer your questions ofox:
We have had it happen with both. Myself, I have tried logging into my PC using Smartcard and with my password, the issue happens in both scenarios.
The only way we have been able to connect, is by inputting user/pass.
With the older clients however, users have been able to "log on as current user" when using either password or smartcard authentication.