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Here's the skinny:

I'm making a web request from a Sql Server CLR procedure to an Asp.net 4.0 application hosted on a Windows 2008 R2 - IIS 7 server.

The website is set up to deny everything but Windows Authentication. Sql Server is running as Network Service on the same box as the web server.

This configuration works on various production instances that we have installed on different networks. One instance however, is resulting in 401.0 errors.

In the past, I've seen 401 errors resulting from this web request when we had the url pointing to a DNS name. As soon as we modified the url to refer to the machine name, things worked fine.

This time it is not working fine... Here are the logs from IIS:

2013-05-30 01:19:31 10.107.187.34 GET /LoanPortfolios/ComputeLoansForPortfolio portfolioId=1&effectiveDate=5/27/2013 80 - 10.107.187.34 - 401 2 5 0

2013-05-30 01:19:31 10.107.187.34 GET /LoanPortfolios/ComputeLoansForPortfolio portfolioId=1&effectiveDate=5/27/2013 80 DOMAINNAME\PRDSVC23$ 10.107.187.34 - 401 0 0 453

Of course I expect the first 401 for the challenge. It is the second one that is giving me this headache. Anything else I could be looking at?

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