I am about to start on a project that will be running as a windows service listening for incoming connections and doing some things locally then sending a reply message. I understand the basic concepts with sockets and communicating over the network, however the things the service are doing could very easily abused. I would like to authenticate the person connecting, preferably against the windows local users on the machine the service is running, to see if they have windows administrative/power user rights.
I know how to do it check the rights once I have their information but I know sending the user name and password to the application over the network in the clear is a no no. I was thinking of just encrypting the password with some secret key but I know "trying to be clever" is the worst possible thing you can do in cryptography so I wanted to know what is the "correct" way to handle this situation.