This requires that user accounts be created for each user and that you use groups to lessen the administrative burden of maintaining these accounts. Anonymous users only need the Log On Locally right and read permission to appropriate folders. Protected areas require a username and password which are checked against the accounts database either on the local standalone machine or on the PDC if a member of a domain. In a domain situation these accounts are domain accounts = domain\username You see this if you use OWA in exchange which is just an *.ASP page on IIS. Set the Directory security to NT Challenge/Response.
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