I have an intranet web site using Windows Authentication. I have disabled Anonymous Authentication and enabled ASP.NET Impersonation and Windows Authentication, using NTLM.
In my application I have an Ajax HTML Editor Extender that uses Ajax File Upload for inserting images. When I deploy the site, I can access it from my workstation (where I am already logged in,) can access the editor and insert images. When I select the site from within IIS and select "Browse *:80 (http)", go to editor and try to insert an image, it pops up the login prompt (which it shouldn't) and does not accept my credentials. I have given access to site folder in inetpub\wwwroot\mySite to Network Service, under which application pool runs, Domain Users, <ServerName>/Users, IIS_IUSRS, with full control.
This same behavior happens if any other user, accessing the site from their workstations, attempts to insert an image: login prompt pops up for them. The only difference between them and me is that I am a member of local administrator group on the server; but I cant add all these users to the group so they can add images. I have been trying to resolve this for the past two days to no avail. Any help is greatly appreciated.