SharePoint Server 2007 Anonymous Access Gotcha!
Today for the first time I was attempting to create a SharePoint site with Anonymous Access. As I usually do when attempting to trying something new I fired up my MOSSDEMO image and promptly created a new web application. However after following all the steps to the letter in Inside Microsoft Office SharePoint Server 2007 book I was still being prompted for windows credentials when I attempted to access the site.
After attempting the set up 2 or 3 times it dawned on me, "I was using windows authentication to access the WSS_Content database" so when I hit my site SharePoint was passing through the authorisation request hence resulting in a prompt for windows credentials.
After creating a SharePointSvc account on my SQL server and setting up yet another web application my Anonymous access was up and running. Now to get forms authentication going!
[Update:]
Ok so put some egg on my face turns out my issue had noting to do with using a SQL account my problem was that my Network Service account didn't have access to my WSS Content database, added the service account to my SQL server and Bob's my uncle everything worked a treat.