I have a simple web service that is in a virtual directory under a WSS 3.0 web app virtual directory. If I log on to the box and use IE to execute the web service it works. If I write a web part it fails with:
The request failed with HTTP status 401: Unauthorized
The really strange thing is that it works in production, but not the new test server! I have looked at both web.configs and IIS settings and see no differences. Both boxes are running Server08, IIS7 and WSS 3.0 (126.96.36.19921).