Instead of hosting local development sites with different ports or as sub webs of the default root app, I choose to run all of my development sites as unique sites. I use host header strings to determine which site is hit without requiring unique ports for each.
Most of the time this works fine - except when you want to authenticate. Normally, IIS does not allow NTLM requests when the domains differ. In order to allow authentication to work on a site that uses host headers, perform the following actions:
Labels: IIS