Event ID 537 Digest Authentication

From: Isaac (Isaac_at_discussions.microsoft.com)
Date: 08/22/05 

Date: Mon, 22 Aug 2005 10:10:20 -0700

I have been fighting this for a few days now, so any help would be
appreciated!!!!

I am using a Windows 2003 SP1 server to setup a new website that will
require authentication. I have the only authentication for that web site set
to be digest authentication. This machine is not a domain controller, and my
domain is Windows 2000. I do have the following configured:

Reversable encryption for user accounts
Subauthentication installed on IIS server
I have disabled the loopback check (even though I am doing an
http://computername/folder)
Realm is configured to my domain

Everytime I try to athentication, my security log shows an event id 537 for
the WDIGEST logon process. Browser (IE 6 SP1 latest and greatest patches)
gets a 401.1 error as well.

HELP!!!!

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