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This is how to configure IIS for integrated authentication.
http://netpl.blogspot.com/2012/06/iis-75-integrated-security-with-no.html
This will make your site available for intranet users WITHOUT the prompt for credentials.
Note that this also works for web users. A built-in web browser window is displayed as a result of HTTP 401. A user provides his/her credentials and is in.
If you rather want to show your custom web form as a result of 401 (unauthorized), you'd have to trick the browser a little:
http://www.codeproject.com/Articles/11202/Redirecting-to-custom-401-page-when-quot-Access-de
This way you can redirect an unauthorized response to a web form of your choice (for example, to show an asp.net login form).
Although the integrated authentication can be easily configured, prepare for a lot of experiments when setting up your mixed (integrated/forms) authentication. Things change with every version of IIS; also IIS7 behaves differently if a pool is in classic vs integrated mode.