InfoPath 2007 And Endpoint Yielding HTTP Authentication Failed.

I created a HelloWorld like example using InforPath 2007 and endpoint with SQL Server 2005. Very simple example.

I created a stored procedure that took in one parameter, a datetime field. This parameter is then inserted into a db table that has two columns, an id column and a datetime column.

I took the store procedure just discribed to create an endpoint. Cool. The WSDL is showing, I'm feeling good.

I go to InfoPath and make it so that submit a datetime to the webmethod associated with the endpoint. The data table shows one more row has been added and it is the datetime I sent from InfoPath. YEA!! I go to the Event View and see that I have an error message. The message is HTTP authenticaiton failed. [CLIENT: 10.8.2.26]. Bummer!!

This does not make sense to me. I am able to update the targeted database table but I get an exception. I do not like exceptions nor warnings without an explanation. Does anyone have an idea why this is happening?

The endpoint code looks like: <code snippet>

CREATE ENDPOINT [GeraldTesting_endpoint]
AUTHORIZATION
STATE=STARTED
AS HTTP (PATH=N'/testEndPoint',
PORTS = (CLEAR),
AUTHENTICATION = (INTEGRATED),
SITE=N'*',
CLEAR_PORT = 8080,
COMPRESSION=DISABLED)
FOR SOAP (
WEBMETHOD 'testEndPoint'
( NAME=N'[geraldstest].[dbo].[Gerald_Test_Proc]'
, SCHEMA=STANDARD,
FORMAT=ALL_RESULTS),
BATCHES=ENABLED, WSDL=N'[master].[sys].[sp_http_generate_wsdl_defaultcomplexorsimple]',
SESSIONS=DISABLED, SESSION_TIMEOUT=60,
DATABASE=N'geraldstest', NAMESPACE=N'http://tempuri.org', SCHEMA=STANDARD, CHARACTER_SET=XML)

</code snippet>

I had to give up for the project I am currently working because of time constraints. But in the future, for out-of-the-box functionality for proof-of-concept/prototyping, I would like to use endpoints.