Like you our server is not running on localhost, and the user's directory is not the root, and the user has to authenticate (using basic authentication)...
As yet I have not been able to work out a solution, although I know it exists because sites like sharemation.com have somehow worked around the problem - I just haven't figured out how they do it.
If you find a solution to this problem can you let me know - it has driven us mad for months before we finally gave up...
We recommend users install webdrive - it works great but costs US$30 a pop!
Thanks for any help (if you find a solution)
John Sidney-Woollett
ps Here is another document that may help you:
http://support.microsoft.com/default.aspx?scid=kb;EN-US;269681
And some specific instructions that work (sometimes) but I don't want my users to have to play around with their OS installs:
<quote>
The problem is a conflicting Office Installation (since Office 2002) which changes the webdav components of Windows XP. To change them back (to the working one) you need to follow these steps:
1. You will find a file called webfldrs.msi (Normally under \WINDOWS\SYSTEM32\webfldrs.msi - if you installed Windows XP Servicepack 1 you will find it under \WINDOWS\ServicePackFiles\i386\webfldrs.msi).
2. Start the installation with double-click or right-click -> webfldrs.msi.
3. Now you have to click on "Select reinstall mode".
4. Uncheck "Repair all detected reinstall problems". Check "Force all files to be reinstalled, regardless of checksum or version". Check "Verify that required user registry entries are present". Check "Verify that required machine registry entries are present". Check "Validate shortcuts".
5. Press OK and REINSTALL
6. Normally no reboot is required and now everything goes fine. </quote>
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