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I have developed an application on my development box. I have some windows users on the system. I have created some groups and added the users ti those groups. I have given permission to the group, But I cannot login with those usernames.

What am I Missing?

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You said you have some "windows users on the system" does that mean these are local users and not domain users? – Mike Oryszak Nov 13 '11 at 16:17
These are local users of the system(With those users, I can login to the OS but not to the SP Portal). I am not sure of domain users, do you mean they are AD users? – Hari Gillala Nov 13 '11 at 17:00
domain users = AD users. – Mike Oryszak Nov 13 '11 at 17:07

When you added the local users to the groups it should resolve to something like "workstation\user1" so when you log into the site, you should use the same format, with the computername as a prefix.

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