in reply to Re^2: NTLM authentication with IIS 6
in thread NTLM authentication with IIS 6

It's possible you are running into the same issue I am, in my case the policy is set on the server (NtlmMinClientSec) to 0x20080030.. In short it's 128-bit encryption, NTLMv2 session security, Message confidentiality, Message integrity.

It's still v2 but with additional minimum NTLMSSP requirements that may or may not be implemented..