I have a windows 2003 server on an AD domain that hosts an IIS 6 website (currently using http, no SSL).
When set to basic auth I can log in as an AD user from both the local system (IE8) and remote PCs (Various).
When set to Integrated Windows auth we can log in from remote systems fine, but trying to log in by running IE on the server itself fails; it rejects the password 3 times then gives a permission denied error. We've tried multiple host names, and we've tried editing the hosts file to connect to both 127.0.0.1 and 10.1.1.1 (the servers IP)
What could be causing IE on the web server to fail while external browsers are fine?