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Sharepoint 2007 running on Windows 2003 SQL 2005

Just installed Sharepoint 2007 on Virtual server running 2003 and SQL2005. Is a single server installation. We have all services running but after we create the first site we cannot authenticate to the site. We have enabled basic authentication on the site to make sure the DOMAIN passwords passes but it cannot authenticate to any accounts on out first test site. We have a DNS record for the test site.

Any suggestions?

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What msg or error are you getting when a user tries to access the site?
Have you added Domain Users to People and Group Permissions Yet?
Can you authenticate as System Account or Administrator, if logging in?
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When a user tries to log in to the site we get the login screen again for 3 times until it times out.

Where do I add the permission to the new site I just creates. We can only find the permissions link to the Sharepoint management site

I can only authenticate to the Sharepoint administrator site. We cannot authenticate against the sites we create. Probably we do not know where to set those rights
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I've requested that this question be closed as follows:

Accepted answer: 0 points for scubablue's comment http:/Q_27248527.html#36437713

for the following reason:

no many people answering in EE
no many people EE
Is there less advisors in EE now