EAP-MD5 on Server2008 R2

Goodafternoon everyone.

Would anyone of you be able as to help me out on the following:

I am trying to set up NPS with EAP-MD5 ( reason? well I got a crappy switch which only supports PAP and eap-md5..)
I already added the registry entries on the server and MD5 is now visible on the server.
I also added it to the windows 7 Ultimate test computer, so I can now selcect MD5.

If I now look at the server I do see some traffice comming by but mine client isn't being authorized.
First of all, I think..., is because it can't find a valid policy ( I will add the logging at the bottom of this post ).

Setup: PKI, AD, NPS on the same server ( I know this is stupid and insecure but it should work, shouldn't it...).

Now my biggest and enoying issue is:
Why is my computer not being authorized if I log in with some AD credentials?
PS.: I made it working with EAP-TLS with another radius client.

I just want the authentication to be on the user account in AD ( no computer verification or whatsoever, unless required ).

Hereby the logging:

Network Policy Server denied access to a user.

Contact the Network Policy Server administrator for more information.

User:
	Security ID:			NULL SID
	Account Name:			SERVICES\useraccount
	Account Domain:			-
	Fully Qualified Account Name:	-

Client Machine:
	Security ID:			NULL SID
	Account Name:			-
	Fully Qualified Account Name:	-
	OS-Version:			-
	Called Station Identifier:		-
	Calling Station Identifier:		00-25-B3-71-03-04

NAS:
	NAS IPv4 Address:		192.168.11.3
	NAS IPv6 Address:		-
	NAS Identifier:			-
	NAS Port-Type:			-
	NAS Port:			3

RADIUS Client:
	Client Friendly Name:		switch
	Client IP Address:			192.168.11.3

Authentication Details:
	Connection Request Policy Name:	-
	Network Policy Name:		-
	Authentication Provider:		-
	Authentication Server:		PRDITSDC01.services.domain.local
	Authentication Type:		-
	EAP Type:			-
	Account Session Identifier:		-
	Logging Results:			Accounting information was written to the local log file.
	Reason Code:			49
	Reason:				The RADIUS request did not match any configured connection request policy (CRP).

I also bolded the field in which I think I screwed up.
Could it be possible that I am missing some settings on the server???

Please heeeeeelp :-)

Andre