- A downstream server is chained to an upstream server that is running Microsoft Internet Security and Acceleration (ISA) Server 2004 or Microsoft Internet Security and Acceleration (ISA) Server 2006.
- A client computer is configured to use the downstream server as the proxy server.
- On the upstream server, you have enabled the hotfix that is described in the following Microsoft Knowledge Base article:927265 Authentication fails when client computers use Internet Explorer 7 to authenticate with an upstream ISA Server computer through a downstream ISA Server computer that does not require authentication
Error Code: 502 Proxy Error. Logon Failure: Unknown user name or bad password. (1326)