The remote server returned an error: (401) Unauthorized - How can I fix, or do a workaround?

I am developing company web site with ASP.NET, where I am using C# to post a question i.e. social content, to a company SharePoint community. The SharePoint site uses NewsGator for social content. This is all happening on a company intranet. The website was developed using VS2008, and the .Net Framework 3.5. The SharePoint site is on a company farm.

When I use the web app from my workstation via the IDE, it works great!, and the question gets successfully posted to the SharePoint Community- Woohoo! But after I publish the web app, to our development environment on a single Windows 2008 R2 server (which resides on a different domain BTW), I’ll use the web app from the server, and when I try to post a question, and I get a error: “The remote server returned an error: (401) Unauthorized.” My code is included as well as the error info.

How can I work around this issue. Keep in mind, I want to do this work around in my code, Doing the workaround on the SharePoint server farm (which is in production) is not an option. Virtually the same applies for the web server, because the app will eventually be on a production web farm.  

    public class ReSTService
    {
       public string HttpPost(string url, string[] paramName, string[] paramVal)
        {
            HttpWebRequest rqst = WebRequest.Create(new Uri(url))as HttpWebRequest;
            rqst.UseDefaultCredentials = true;
            rqst.Method = "POST";
            rqst.ContentType = "application/x-www-form-urlencoded";

            StringBuilder sbParams= new StringBuilder();
            for (int i = 0; i < paramName.Length; i++)
            {
                sbParams.Append(paramName[i]);
                sbParams.Append(HttpUtility.UrlEncode(paramVal[i]));
            }

            byte[] formData = UTF8Encoding.UTF8.GetBytes(sbParams.ToString());
            rqst.ContentLength = formData.Length;

            using (Stream post = rqst.GetRequestStream())
            {
                post.Write(formData, 0, formData.Length);
            }

            string result = null;
            using (HttpWebResponse resp = rqst.GetResponse() as HttpWebResponse)
            {
                StreamReader reader = new StreamReader(resp.GetResponseStream());
                result = reader.ReadToEnd();
            }
            return "";
        }
    }

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Error Info:
Process information:
    Process ID: 3760
    Process name: w3wp.exe
    Account name: IIS APPPOOL\sswtool
 
Exception information:
    Exception type: WebException
    Exception message: The remote server returned an error: (401) Unauthorized.
 
Request information:
    Request URL: httppathhidden/for/thispost/default.aspx
    Request path: /rootDirNameHidden/ssw/default.aspx
    User host address: xx.xx.xx.125
    User: xxx\myID
    Is authenticated: True
    Authentication Type: NTLM
    Thread account name: IIS APPPOOL\rootDirName
 
Thread information:
    Thread ID: 3
    Thread account name: IIS APPPOOL\rootDirName    Is impersonating: False
    Stack trace:    at System.Net.HttpWebRequest.GetResponse()
   at theNameSpace.ssw.ReSTService.HttpPost(String url, String[] paramName, String[] paramVal) in pathhidden\for\thispost\classes\ReSTService.cs:line 40
   at theNameSpace.ssw.Default.askButton_Click(Object sender, EventArgs e) in pathhidden\for\thispost\classes\Default.aspx.cs:line 47
   at System.Web.UI.WebControls.Button.OnClick(EventArgs e)
   at System.Web.UI.WebControls.Button.RaisePostBackEvent(String eventArgument)
   at System.Web.UI.Page.RaisePostBackEvent(IPostBackEventHandler sourceControl, String eventArgument)
   at System.Web.UI.Page.ProcessRequestMain(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)