Not technically HAP issue but I imagine with Chromes' popularity on the up people will run into this.

The problem is described in these two posts:
apache - .htaccess requires password in chrome but not other browsers? - Server Fault
Issue 12876 - chromium - password required when auto-requested /favicon.ico returns 401 - An open-source browser project to help move the web forward. - Google Project Hosting

Users will report 'constant password prompt', I've managed to clear it up temporarily by renaming the favicon; has anyone else noticed this issue?

The top link describes a fix for apache, any ideas how to achieve this in IIS?