In addition to "answered Mar 28 '11 at 12:27Bryan Bedard"
In case that the solution doesn't work, you have to enable Windows Authentication in iss manager. How to do that:
1.To start IIS Manager from the Run dialog box: On the Start menu, click All Programs, click Accessories, and then click Run. In the Open box, type inetmgr and then click OK.
2.In the Connections pane, expand the server name, expand Sites, and go to the level in the hierarchy pane that you want to configure, and then click the Web site or Web application. 3. Scroll to the IIS section in the Home pane, and then double-click Authentication.
4.In the Authentication pane, select Anonymous Authentication, and then click Disable.