Thanks to everyone who provided suggestions towards a solution for 
this problem.

To update on the apparent solution:

There was a box checked deep in the bowels of IIS that allowed IIS to 
contol the password for the anonymous user (see:  Properties --> 
Directory Security --> Anonymous access and authentication control --
> Account used for anonymous access --> Allow IIS to control 
password).

Apparently this setup worked just fine on my development system where 
the web server and the database server were co-located, but on the 
production system where they were seperate boxes, it was a no-go.  As 
soon as this box was unchecked -- viola, it all works!!

Don't you think that Microsoft would document something like this 
somewhere a little more clearly??
Sheesh...

Cary




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