As stated previously, NTLM is typically used if your back end is Windows Managed (MS Active Directory). However, there are also modules available for Apache that will tie into this: mod_ntlm.
Since this is it's own protocol, it is required that the browser is able to understand this protocol and reply to the authentication challenges. I don't know which browsers support this off hand, but my assumption would be that most do.
From my experience, kerberos is more of a prefered method, but I have not worked with it much, so unfortunately, I don't have much advise as far as that goes.
On a side note, I recall reading somewhere that the JRE also has ways of tying into NTLM on your web server in order to obtain identity information for the authenticated user. As stated previously, .NET has support for this as well.
Also, Firefox does not support NTLM by default but it can be configured using the following tut: http://www.crossedconnections.org/w/?p=89