Please please use html tags to format your question to make it more readable.

The response header:

Client-Warning = Unsupported authentication scheme 'ntlm'
[download]

gives away that LWP cannot support the 'ntlm' authentication scheme. This is because a module 'LWP::Authen::ntlm' is missing.
Now you probably have a module called ´ LWP:Authen::Ntlm' in your @INC library path. However notice the difference in case for the 'N' in the name!

The workaround (I can't test it myself) would be to copy the library module file 'Ntlm' in directory '../LWP/Authen' to 'ntlm' all lowercase. Also edit this file to change the package name to lowercase as well.
Unless Microsoft has made more changes to the protocol this should do the trick.

When it works out well, please inform the CPAN author of the LPW::Authen::Ntlm module so that an enhancement can be made.