What you are trying to do is get NTLM to forward the identity on to the next server, which it cannot do - it can only do impersonation which only gives you access to local resources. It won't let you cross a machine boundary. Kerberos authentication supports delegation (what you need) by using tickets, and the ticket can be forwarded on when all servers and applications in the chain are correctly configured and Kerberos is set up correctly on the domain. So, in short you need to switch from using NTLM to Kerberos.
For more on Windows Authentication options available to you and how they work start at: http://msdn.microsoft.com/en-us/library/ff647076.aspx