We have the same problem as described above.

We are sure that we have same username and password on both instances. We don't 
use localhost or 127.0.0.1 we use the exact ip. We run on Magnolia Enterprise 
5.3.6. The problem start occuring when I installed the activation-exchange 
module and the synchronization module to our demo environnement. We wanted to 
try working on multiple instances this worked. After this testing I installed 
our old configuration without the activation-exchange module and the 
synchronization module. So just one public instance.

The quick fix I have for this is adding activation-exchange and synchronization 
module from the war file. After this I can publish again without changing 
configuration. 

ERROR  info.magnolia.module.activation.SimpleSyndicator 24.12.2014 16:13:32 -- 
Not able to send the activation request 
[http://10.0.0.85:8080/.magnolia/activation]: cannot retry due to server 
authentication, in streaming mode
info.magnolia.cms.exchange.ExchangeException: Not able to send the activation 
request

-- 
Context is everything: 
http://forum.magnolia-cms.com/forum/thread.html?threadId=eff52dbc-4a5a-401e-a279-9242c9736d8e


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