Problem with Basic Authentication

Hi,
 
I am having a problem with validating pages protected with Basic
Authentication. I have installed the Validator locally on our intranet and
have tried using versions check1.305.2.137, check1.305.2.146,
check1.305.2.147 and check1.305.2.148, but the error is still present.
 
I used an HTTP sniffer to attempt to debug the problem and have the log
attached to this email. It looks like the Validator requests the page twice
before prompting the user 3x for credentials, the user enters them, but it
never sends them to the target page. Validator then prints out the
authentication error message.
 
Any ideas?
 
-Philip