hi there; i'm troubleshooting why i cannot get past the login dialog on an asp.net site configured for windows authentication and impersonation. help me before i switch to os x development and objective-c

i have an asp.net 2.0 application and i'm trying to deploy it on windows 7 with iis 7.5. i've created a new site, and bound it to localhost and a fully qualified domain name. the fqdn is in my hosts file, and is redirected to 127.0.0.1

the site is also running with an appdomain i created, with integrated pipeline mode, and the process model identity is set to ApplicationPoolIdentity.

web.config includes the following: <trust level="High" /> <authentication mode="Windows" /> <authorization> <deny users="?"/> </authorization> <identity impersonate="true"/>

acl on the directory for the site is desperation set to everyone full control, the application pool virtual account (windows 7 thing) is set to full control on the physical directory for the site also.

iis authentication has asp.net impersonation enabled, and windows authentication enabled.

when i connect to the site as localhost, it permits me to get past the login prompt and the application loads without incident.

when i connect to the site as the fqdn set in the host headers bindings for this site/ip/port, i cannot get past the login prompt. clicking cancel throws to a http 401.1 error page.

why? thanks very much in advance.