IIS 5.0 and security

From: user (user@user.com)
Date: 04/08/03

From: "user" <user@user.com>
Date: Tue, 8 Apr 2003 07:17:56 -0400

 I have install IIS 5.0 on windows 2000 server. Also i have install the IIS
lockdown tool and url scan.
I set the settings at IIS for Default Web Site
properties under "Directory Security" > "Anonymous access
and authentication control" > "Edit" as below.
1. checked for "Anonymous access" (no user name/password
required to access this resource)
2.Checked for "Basic Authentication" (password is sent in
a clear text)

When i access from local machine its fine but from othere machine in the
network it prompts for user name and password? Also from the internet other
domain i can not access at all?

Any idea?