401 - Unauthorized: Access is denied due to invalid credentials on IIS7 (Windows Server 2008)
i encountered problem in iis7 after disabled "anonymous authentication" , enabled "integrated window authentication". hopefully helps encountered same issue. kb article link: http://support.microsoft.com/kb/215383 check ntauthenticationproviders iis metabase property, if set default "negotiate,ntlm" . c:\inetpub\adminscripts>cscript adsutil.vbs w3svc/ntauthenticationproviders set ntauthenticationproviders iis metabase property "ntlm". c:\inetpub\adminscripts>cscript adsutil.vbs set w3svc/ntauthenticationproviders "ntlm" Windows Server > Security