This problem is been around for a while and there are very few references available in online regarding this issue.

This is mainly IIS problem with Windows Authentication. To solve this, please follow the below steps:

1. Start -> Control Panel -> Administrative Tools -> Internet Information Services
2. Expand your Computer -> Web Sites -> Default Web Site
3. Right click Default Web Site and choose Properties
4. Click on the Directory Security tab
5. Click on the Edit button under “Anonymous access and authentication control” group
6. Check the “Anonymous access” and verify that the user name is IUSR_<your-computer-name> and check the “Allow IIS to control password” checkbox.
7. Check the “Integrated Windows authentication” checkbox
8. Click OK and OK again and close the Internet Information Services window
9. Open Firefox
10. Type about:config in the Address bar
11. Type network.automatic-ntlm-auth.trusted-uris in the filter box
12. Double click the resultant row and type localhost and press OK
13. Now, close Firefox and reopen Firefox
14. If you visit http://localhost now, there will not be any problems.

Hope that helps…

Let me know your comments and suggestions…

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