Apparently there is a "Known issue" where some MVC applications are not able to get the User.Identity populated with just <authentication ="Windows"/>. The known issue was found under Known MVC issues
In some cases you are also required to add the following line to the <appSettings> section of the web.config:
< add key="autoFormsAuthentication" value="false" />
I hope this helps some folks in their MVC journey!
Reference:
Dan Lewis' Development and Technology Blog