Why won't integrated authentication work?

.NETters,

We just installed Microsoft CRM on a system and we are running into a login
problem that I don't understand.

MS CRM is an ASP.NET application. The system it is installed on (named
hubble) runs Windows 2003 Server. The website is configured for ONLY
integrated Windows authentication. All other authentication modes are
disabled. The configuration file, web.config, is set for authentication mode
as Windows.

When a user tries to connect to the CRM system (http://hubble), the user is
prompted with username/password dialog box. This is baffling. IE is supposed
to automatically handshake with IIS for integrated Windows authentication.

Note that once we logon using the login prompt, the CRM system works as
expected.

On one IE client, the problem gets weirder. Instead of the usual login
prompt, I get an error message 0x80040226. MSDN help on CRM interprets this
error as "The logged-on user was not found in Active Directory."

I am wondering if anyone has any idea on what the problem could be.

Thank you in advance for your help.

Pradeep

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