IIS7, WebDav & Windows 7

Hello Pros:

I keep on getting login prompts while trying to access a webdav resource over the application i work. I have set-up windows auth over the website deployed over IIS 7 and windows 2008 SP2 server.

When as a user i try accessing the WebDav resource i get prompted for entering my credentials only when i am working over win 7 based client not with XP.

Any pointers to resolve it would be much appreciated.

Here is what i get if i cancel over the login prompts.

"Falied to naviagte to a WebDAV location. Your system probably  does not have web client installed.

#1, 1, 1223, 0, 0, 80070005".

Thanks,

Mukesh Giri