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    <p>Sounds like the new Loopback check security feature of Windows Server 2003 SP1. As I understand it, is designed to prevent a particular type of interception attack.</p> <p>From <a href="http://support.microsoft.com/kb/896861" rel="nofollow noreferrer">http://support.microsoft.com/kb/896861</a></p> <h2>SYMPTOMS</h2> <p>When you use the fully qualified domain name (FQDN) or a custom host header to browse a local Web site that is hosted on a computer that is running Microsoft Internet Information Services (IIS) 5.1 or IIS 6, you may receive an error message that resembles the following: HTTP 401.1 - Unauthorized: Logon Failed This issue occurs when the Web site uses Integrated Authentication and has a name that is mapped to the local loopback address.</p> <p>Note You only receive this error message if you try to browse the Web site directly on the server. If you browse the Web site from a client computer, the Web site works as expected.</p> <h2>CAUSE</h2> <p>This issue occurs if you install Microsoft Windows XP Service Pack 2 (SP2) or Microsoft Windows Server 2003 Service Pack 1 (SP1). Windows XP SP2 and Windows Server 2003 SP1 include a loopback check security feature that is designed to help prevent reflection attacks on your computer. Therefore, authentication fails if the FQDN or the custom host header that you use does not match the local computer name.</p> <h2>Workaround</h2> <ul> <li>Method 1: Disable the loopback check</li> <li>Method 2: Specify host names</li> </ul> <p>See <a href="http://support.microsoft.com/kb/896861" rel="nofollow noreferrer">http://support.microsoft.com/kb/896861</a> for details.</p> <hr> <p>Edit - just noticed that you said you were seeing this from Client PCs as well... that's more unusual. But I'd still look to test one of these workarounds, to see if it corrected the problem (and if so, might indicate a problem with your DNS config).</p>
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