No Basic Authentication choice available in IIS7

Go to Control Panel\Programs -> Turn Windows features on or off, and enable Basic Authentication under IIS:

I don't have enough rep to add a comment to the chosen answer, but I feel like it's important to add that you'll likely need to close and reopen IIS Manager before it will show up in the list of choices for Authentication.

Otherwise you could go mad trying to figure out why you did the above and the list didn't change.

You might have to install the basic authentication module for IIS.

For Vista/Win7 it is: Control Panel -> Programs -> Turn Windows features on or off

For Server 2008: Server Manager -> Roles -> Web Server -> Add Role Services Then in the treeview it is: Internet Information Services -> World Wide Web Services -> Security - > Basic Authentication

Click the checkbox and install. Then you should be able to see the basic authentication option.

(source: https://serverfault.com/questions/29521/iis7-basic-authentication-module-missing)