Comment #107 on issue 19 by darren.kruse: Automatic integrated windows  
authentication (aka automatic NTLM / Negotiate Auth support)
http://code.google.com/p/chromium/issues/detail?id=19

Both the beta and stable channel have been updated to 3.0.195.27 and  
contain the
following fixes:
Added NTLMv2 support on Windows. (Issue: 14206)
http://code.google.com/p/chromium/issues/detail?id=14206

As the standard setup installer fails - download the current standalone  
installer ;
http://dl.google.com/chrome/install/195.27/chrome_installer.exe

It picks up the host and proxy port from my IE .pac file. Enter username  
and password
once - and all is good :-)

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