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Difference between accessing WS using host name and IP address

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I have a webservice which I have configured to allow Authenticated users
only and deny all Annonymus users. Also, I have enabled Impersonation in
config file and using Windows authentication.

On IIS, I have created virtual folder where my WS sits and in directory
security, I have set Annonymus and Integrated Windows authentication both
enabled (checked).

Now, the problem occures when I am trying to access the web service using
localhost OR my box name in webservice URL vs using my box's IP address.

When I use localhost or box name (http://localhost/test.asmx or
http://workstation1/test.asmx) it works fine, however when I use ip address
for host (, it displays a message asking user
name and password.This is causing issue when I am trying to access ws from MS
office client as it fails to authenticate the requester.

Can someone tell me if there is any setting that I need to do on IIS to get
ridoff this message input asking user identity?

If someone can explain how both approaches are different(using host name and
host IP) that would be a great help.


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