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Java does not support the [capaths] section in krb5.conf correctly if there are more then one intermediate realm between the client realm and the server realm.
I reproduced described problem on java 7u51b09 using provided test. Test passed on 7u60b01. I'm closing this bug as verified.
Date: 2013-10-14 17:11:26 +0000
Date: 2013-09-26 03:12:37 +0000