Hello Brian,
If your web application in a intranet, and the web server is also in your
domain, you can set the virtual folder as windows authentication. And then,
the request to the web service will be authenticated with the doman/AD.
If If your web application on internet, you may need the user to pass
domain user account and password. (Maybe within SSL/Https for security),
and you can authticate them with following way:
http://support.microsoft.com/kb/316748
Hope this help,
Luke Zhang
Microsoft Online Community Support
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