Try using MACHINENAME\UserName.
In your case the Isolated Host is the host that must be Trusted.
For configuring the receive pipeline, on the receive location configuration
dialog box, to the right of the pipeline selection drop-down box there's a
button "..." that you can push to configure the pipeline.

This posting is provided "AS IS" with no warranties, and confers no rights.

Adrian Hamza [MSFT]
http://blogs.msdn.com/ahamza/
My blog on BizTalk 2006
Windows SharePoint Services adapter

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