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SSO Questions - Logging into an external website using Salesforce credentials..


Ive been ask to assist a developer setup authentication between Salesforce and his custom website. We want to configure the authentication as SSO, so when users view his website (through an iframe in Salesforce) they do not have to login with their separate credentials. 

I have not setup SSO in this manner so mainly I could use some help getting started. Im also not an expert on configuring OAuth, but have enough experience with Salesforce API's to know he will likely need the user's token to make this work(?). Anyway, here are a few specific questions that I have...

1) What information do I send his website? Token? How do I obtain the current users token so I can pass it through the iFrame to log them into his website? 
2) What configurations need to be setup in Salesforce to make the connection? IP Whitelist? Single Sign-On Settings? Remote Site? Or others?

For now nothing will be passed back into Salesforce from his website, we just don't want users to have to login separately each time they visit his site through Salesforce.

All comments and suggestions are appreciated. Thanks ahead of time!
Andy BoettcherAndy Boettcher
Salesforce has some great help documentation on this very topic here:  https://help.salesforce.com/apex/HTViewHelpDoc?id=identity_provider_enable.htm&language=en

Read through that and the related links on the first page there and you should get everything you need.