You may run into a situation where you have configured your site to run Windows authentication but you get an authentication error when you try to browse it during a debug session.
To fix this issue, you need to edit the Application Host file for IIS and enable Windows authentication. You can find the file here:
\My Documents\IISExpress\config\applicationhost.config
Find the <security> section inside the <system.webServer> node and enable Windows authentication as follows:
<system.webServer> ...<security> ...<authentication><windowsAuthentication enabled="true" /></authentication> ...</security> ...</system.webServer>
And that's all there is to it. :-)