Quoting the Visual Studio .Net Walkthrough Book:
Page 158
To Use SQL Server in Web Applications, configure the security settings to
work with Integrated Security:
1. Turn off Anonymous Access in IIS Manager
a. Start IIS Tool from Admin Tools
b. Expand the node for our server
c. Right-click the Default Web Site and Choose Properties from the Context
Menu
d. Click Directory Security tab
e. Click EDIT button in the Anonymous Access and Authentication Control
section
f. Clear the Anonymous Access check box
g. Make sure the Integrated Windows Authentication is checked
2. In your applications's Web.Config file, make these changes:
a. Change
<authentication mode="None" />
to
<authentication mode="Windows" />
b. Insert the following attribute after the <System.Web> tag:
<indentity impersonate="true" />
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