Microsoft.Dynamics.Nav.Types.NavDatabasePasswordException Dynamics NAV/ RTC/WebService

Hi All,
You may face this error when run RTC client or access NAV application using web services. and more over this error you will face in 3 tire installation

Cause
 if below mentioned services are not delegated properly then the users of RTC client will get an error stating that  "Microsoft.Dynamics.Nav.Types.NavDatabasePasswordException Dynamics NAV/ RTC/WebService"

since the services are not delegated then the user name which is used to log On the service only can connect RTC or WebServices

NAV Services are 
Dynamics NAV Server
Dynamics NAV Business Webserives

Solution
Delegate the services correctly
 
Setting up Delegation
http://msdn.microsoft.com/en-us/library/dd301254.aspx