“The request failed with HTTP status 401: Unauthorized.”

The story:

I needed to do a few demos on Microsoft Dynamics CRM 4.0 for Outlook (On-Premise deployment).

I have this MSCRM VPC VM running locally on my Windows 7 64 bit RC build host machine. This functions as my CRM Server, and I use everything locally to connect to it to do my demos, like; Browse to CRM Web via IE8 on my host, and connect CRM Outlook client to this local VM CRM Server. The reason we are doing it this way, is to hide the VM from the audience all together, so we can show off some of the Windows 7 eye candy features as well. I installed Microsoft Dynamics CRM 4.0 for Outlook and went about configuring it…

The problem:

In the 3rd dialog of the configuration wizard where it asks me for the Intranet address for my crm deployment.


I punched in http://moss:5555/ then click on Next…

(I shared loopback adaptor with my VM and statically assigned IP addresses for both the VM as well as my host on the adaptor, so that they belong the same subnet, I then mapped the IP address to ‘moss’ in the hosts file on my host machine)

This big, fat, ugly error popped out “The request failed with HTTP status 401: Unauthorized.


Wait!!! there is MORE… “Mandatory updates for Microsoft Dynamics CRM could not be applied successfully, Try running the application again.


Ok it and exit out of the configuration wizard…


The Resolution:

So there I was, bing’ing / Google’ing the Interweb in desperate needs for an answer. Thanks to Girish Raja who pointed me to the right directly and here it is:

Microsoft Dynamics CRM 4.0 for Outlook (On-Premise)” doesn’t tell you, doesn’t prompt you, and it secretly, deceitfully uses  ‘Stored Credentials’ on the host machine to connect to the server. If it doesn’t find the login details in the ‘Stored Credentials’ on your Windows OS, it will spit out with the above error messages.

Pretty sneaky I reckon!

So there are a couple of ways you can resolve this,

First approach is to use IE;

1. Hit http://moss:5555/ (Or whatever your crm server address is)


2. You’ll be greeted with a Windows Auth prompt, punch your credential and REMEMBER to tick the "Remember my credentials” checkbox, because this will put your credential in the Windows Vault (a new name in Windows 7 for an old feature Saved Credentials).


3. To see this in Windows Vault (If you are on Windows 7), Start | User Accounts and Family Safety | Credential Manager


alternatively you can directly get to it when in enter “Manage Windows Credentials” or “Windows Vault” and “Stored Credentials” works too…


Second approach is to directly add the credential from Credential Manager, which I won’t elaborate, and I’ll reference to an article on how to achieve this later in this post…

Now, when you go back to the MS CRM Outlook Configuration Wizard; we will be able to step through it…


That was easy 😉

Note: You will not be required to deal with “Stored Credentials” if you satisfy the following conditions;
a. Your machine is joined to the same domain as MSCRM
b. You’ve logged on as a domain account and your domain account is a CRM User.
d. You’ve added MSCRM URL to your Intranet sites.
e. Your IE settings is set to “Automatic logon only in Intranet zone” in IE 8 | Tools | Internet Options | Security | Local intranet | Custom Level | User Authentication | Logon


A side note on Windows Vault in Windows 7:

It seems to me that, Windows Vault is essentially the “Stored Credentials” or “Stored User Names and Passwords” feature in previous Windows OS (client and server) but given a prettier name in Windows 7 and with more features.

My colleague Chaks has written a great article explaining the Windows Vault  feature in details.


6 responses to this post.

  1. Posted by Rob Pawlikowski on July 29, 2009 at 7:32 am

    Thanks – it’s a clue. Do you know where this can be corrected in a WindowsXP client?


  2. Hi Rob,

    In XP, if you go Start | Run | type in “control userpasswords2” | enter | Advanced | Manage Passwords




  3. Posted by Rick Perez on August 28, 2009 at 3:27 am

    Thanks for the well written solution. I implemented it however I am still getting the errors. Any other sugesstions?


  4. Thanks a lot sun. You were a life saver.


  5. Wham bam, thank you man! This should have been the first hit in my search! The worst part of this solution? Before I came here I logged into CRM using the first approach, but I didn’t save my credentials… Doh!


  6. thank you! saved me some grief


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