Which indicates the credentials are fine as is the proxy part of the 
transaction. Firefox appears not have security access to the OS properly to do 
the background stuff required. 2/3 of NTLM and related protocols is done in 
background actions.
If it's working in IE then its probably one of Firefox's NTLM settings.  If you enter 
"about:config" in the address bar of FF and then filter for "ntlm" you will see 
what options are available.

More than likely be the "network.automatic-ntlm-auth.trusted-uris;" option 
needs the address of the app server listed.

Unfortunately I've checked network.automatic-ntlm-auth.trusted-uris and the website hostname is in there also. Very frustrating!! Firefox doesn't appear to be able to auth via either method, IE will successfully auth via Kerberos.

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