We have a SharePoint 2007 server which is completely stand alone from the rest of the network. It is it's own Domain Controller for it's own Forest (Windows Server 2008). It is available to the Internet. The IIS security setting is Integrated Authentication but when a user is prompted for their credentials when trying to access from outside the Domain, will their username and password be passed in basic text or encrypted somehow?
Thanks
Integrated will only use Kerberos V5 or NTLM. Both are protected means of authentication, though I'd hesitate to call it encrypted; nothing else in the exchange will be secured. Use SSL to ensure encryption.