Windows authentication problem in IIS 7.5

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IIS7.5

Hi All,

I have deployed web application with windows authentication on Appltication server(windows server 2008 R2) on IIS 7.5.
The Webapplication is only used by users of the current domain(Intranet application).

i have provided Host name to the application, when i try to browse web application it's prompt for credentials even i am on the same server.
when i entered credentials, it prompt me again. This happens 3 times and finally got below error message:

HTTP Error 401.1 - Unauthorized
You do not have permission to view this directory or page using the credentials that you supplied.

Does anybody know what I'm doing wrong?


Thanks in advance...