I've browsed all of the discussions here on StackOverflow regarding NTLM and Java, and I can't seem to find the answer. I'll try and be much more specific.

Here's some code that returns a client stub that (I hope) is configured for NTLM authentication:

ServiceStub getService() {
  try {
    ServiceStub stub = new ServiceStub(
        "http://myserver/some/path/to/webservices.asmx"); // this service is hosted on IIS
    List<String> ntlmPreferences = new ArrayList<String>(1);
    ntlmPreferences.add(HttpTransportProperties.Authenticator.NTLM);
    HttpTransportProperties.Authenticator ntlmAuthenticator = new HttpTransportProperties.Authenticator();
    ntlmAuthenticator.setPreemptiveAuthentication(true);
    ntlmAuthenticator.setAuthSchemes(ntlmPreferences);
    ntlmAuthenticator.setUsername("me");
    ntlmAuthenticator.setHost("localhost");
    ntlmAuthenticator.setDomain("mydomain");
    Options options = stub._getServiceClient().getOptions();
    options.setProperty(HTTPConstants.AUTHENTICATE, ntlmAuthenticator);
    options.setProperty(HTTPConstants.REUSE_HTTP_CLIENT, "true");
    stub._getServiceClient().setOptions(options);
    return stub;
  } catch (AxisFault e) {
      e.printStackTrace();
  }
      return null;
}

This returns a valid SerivceStub object. When I try to invoke a call on the stub, I see the following in my log:

Jun 9, 2010 12:12:22 PM org.apache.commons.httpclient.auth.AuthChallengeProcessor selectAuthScheme
INFO: NTLM authentication scheme selected
Jun 9, 2010 12:12:22 PM org.apache.commons.httpclient.HttpMethodDirector authenticate
SEVERE: Credentials cannot be used for NTLM authentication: org.apache.commons.httpclient.UsernamePasswordCredentials

Does anyone have a solution to this issue?