SQL Logins vs Windows Authentication

I have a VB6 app that uses an SQL Server database. The application uses
Windows Authentication to connect to the database. Permissions in the
database are granted to a domain group. I am considering having the
application hosted. The hosting company says they are configured for SQL
authentication and cannot allow Windows Authentication for security reasons.
They use SQL Server 2005 (cluster). This puzzles me. The users running my
app will have Active Directory accounts in the hosting company's domain.
What security reasons could there be? I hesitate to code SQL Login names and
passwords in my application.

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Richard Mueller
Microsoft MVP Scripting and ADSI
Hilltop Lab - http://www.rlmueller.net
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