SQL Server Linked Server Windows Authentication Config

There is a good blog post about Winodws Authentication config for double-hop linked server.
http://blogs.msdn.com/sql_protocols/archive/2006/08/10/694657.aspx

If Windows Authentication setup is too much trouble, an alternative would be using SQL Server Authentication.
http://itknowledgeexchange.techtarget.com/itanswers/linked-server-error-message-on-a-sql-server-2005-machine/