During my upgrade to SCOM 2012 SP1 I decided to not install the web console while troubleshooting other errors with the Management Server. When I reinstalled the web console I was getting a 401 unauthorized: Access is denied due to invalid credentials error.
The solution to fix this on a new install of the web console was to change the authentication provider order.
Open IIS, highlight the operationsmanger application open authentication
Highlight Windows Authentication, Click Providers
Make sure that NTLM is at the top of the list