ISA 2006 User Authentication issue for internet access

I have ISA 2006 with single NIC card configuration as Web proxy only.  Provided user based internet access by using windows users and group. I am getting userenv Event ID 1053 in application log . What is the best practice in this scenario?
I am getting this error frequently & and the users getting POPup window for Authentication

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Keith AlabasterEnterprise ArchitectCommented:
ISA is getting a denied response when trying to access the username or computername to compare against your authentication process. As it cannot fulfill the authentication process, it asks for manual entry of the credentials. Best practice is to sort that out - no sarcasm intended.

Is ISA joined to the domain? What authentication process have you used? If ISA is not joined to the domain (best-practice says it is by the way) then how is ISA getting access to the windows groups/AD etc?

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