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The 401.3 is a red-herring in this case because it happens when you
hit "cancel" on the authentication dialog, causing the browser to fall
back to anonymous authentication and probably denied by NTFS ACL on
the resource, thus returning a legitimate 401.3. Thus, the 401.3 is
not interesting because it is in response to you hitting "cancel".

The 401 error which caused the user login dialog box to be displayed
to begin with is the real problem. Can you report:
1. ALL Authentication protocols checked in IIS for http://servername
2. Any custom ISAPI Filter DLLs installed for the Website.
3. Any custom ISAPI Filter DLLs installed globally for all websites
(it's in another dialog box different from #2)
4. The IIS log file entries for the requests that cause the user login
dialog box to be initially DISPLAYED. Not the second or third attempts
or you hitting cancel. The actual first request that gets denied. I
want its status, substatus, and win32 error codes, in particular.

Also, please define what you mean by "you can access the site
remotely" but "others cannot". When you say "remotely" do you mean
from another computer? From across the Intranet? From across the
Internet through some proxy servers, firewalls, etc? Network
configuration between client and server can affect functionality of
authentication protocols.


//David
http://w3-4u.blogspot.com
http://blogs.msdn.com/David.Wang

That kind of error is usually caused by the access right of a folder directory. The solution is very easy. go to your directory folder and right click on it. choose properties and then click on the web sharing. Share this folder and give it a alias. That's it. Good luck

From http://www.developmentnow.com/g/91_2006_9_0_0_820435/HTTP-Error-401-3--Unauthorized-Access-is-denied-due-to-an-ACL-set-on-the-requested-resource.ht

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