After impersonation authentication screen keeps popping up in my ASP.NET Application

Question

I'm working on a program that has to archive (zip and delete files and folders) on a server. The servers that hosts the application (ASP.NET MVC) and the server that holds the files are two different servers. When I run the application without impersonation and the default webconfiguration everything works fine. The credential of the program is: NT AUTHORITY\NETWORK SERVICE. When I use impersonation by adding the following line in the web.config <authentication mode="Windows"/> the program runs fine with anonymous login. When I prevent anonymous login by adding the following code to the web.config, the authentication screen keeps popping up for every folder or file I want to access. What's the problem?

<authentication mode="Windows"/>
<identity impersonate="true"/>
<authorization>
  <deny users="?"/>
  <allow users="*"/>
</authorization>

Answer 1

To get this to work, you need to disable anonymous authentication and enable Windows Authentication in IIS, otherwise it doesn't have an identity to impersonate being passed.

Here's how to do that :)