I am running a web service locally that connects to an outside server that i do not have access to.
I keep receiving the “401: Unauthorized” error even though the test credentials are confirmed exactly correct by the admins of this web service.
Do i need to adjust any IIS settings?
Here is a screenshot of the error.

// Webservice
IdentityService ws = new IdentityService();
// Test Static Credentials
string username = "twfnf";
string password = "testme99";
string domain = "testapps1";
NetworkCredential credentials = new NetworkCredential(username, password, domain);
CredentialCache credCache = new CredentialCache();
credCache.Add(new Uri(ws.Url), "Basic", credentials);
ws.Credentials = credCache;
ws.PreAuthenticate = true;
ws.AuthenticateUser();
Removing the following code with Basic Authentication, fixed the issue.
Final Code Working: