WebDAV resourse access

I have several web folders created that I try to open via (IE --> File --> Open (check "Open as Web folder") http://webserver.domain.com/webfolder/subdirectory OR through Network Places.

Regardless of the authentication & access control defined for the web folder, e.g. anonymous, IWA, Basic, etc. I receiving an initial logon prompt that will not accept any username/password. After entering username/password the logon prompt reappers, I hit escape, I receive the authentication logon prompt as expected (Basic authentication prompt with warning about clear text).

These are the IIS logs of the virtual directory access.

2008-06-09 19:20:00 192.168.15.251 PROPFIND /webdav - 80 - 192.168.15.51 Microsoft-WebDAV-MiniRedir/5.1.2600 401
2008-06-09 19:20:00 192.168.15.251 PROPFIND /webdav - 80 - 192.168.15.51 Microsoft-WebDAV-MiniRedir/5.1.2600 401
2008-06-09 19:20:00 192.168.15.251 PROPFIND /webdav/<subdirectory> - 80 <username> 192.168.15.51 Microsoft+Data+Access+Internet+Publishing+Provider+DAV 207
2008-06-09 19:20:02 192.168.15.251 PROPFIND /webdav/<subdirectory> - 80 - 192.168.15.51 Microsoft+Data+Access+Internet+Publishing+Provider+DAV 401
2008-06-09 19:20:02 192.168.15.251 PROPFIND /webdav/<subdirectory> - 80 <username> 192.168.15.51 Microsoft+Data+Access+Internet+Publishing+Provider+DAV 207

As you can see the 401 error code is an access denied response.

Thank you for any direction you might give me to troubleshoot this problem.
aaronremskiAsked:
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aaronremskiConnect With a Mentor Author Commented:
http://blog.dreamhosters.com/kbase/index.cgi?area=3004
http://www.webdavsystem.com/server/documentation/troubleshooting

A combination of these two resolutions solved my problem.

In summary:
1.XP SP2 disables WebDAV Client BasicAuth
2. Specifying default port of webDAV IIS server solves root authentication issue.

Therefore:
Instead of http://webdav.hostserver.com/webdavfolder/

Use http://webdav.hostserver.com:80/webdavfolder/#
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