Windows Authentication for WCF service with Silverlight 5, IIS 7.5 - wcf

Question

I have a Silverlight 5 Prism application with a (regular) WCF service in an ASP.net project. I'm using IIS 7.5 to host it on the localhost. I followed all the steps in
How to: Use Windows Authentication to Secure a Service for Silverlight Applications
How to: Host a Secure Service in ASP.NET for Silverlight Applications
but I can't get windows authentication to work. Whenever I turn off anonymous authentication in IIS, my application throws an The remote server returned an error: NotFound. exception because it doesn't find the WCF service.
When I try to update the service reference in Visual Studio I get the error Security settings for this service require 'Anonymous' Authentication but it is not enabled for the IIS application that hosts this service.
When I turn on Anonymous Authentication the service works, but I don't get the windows user credentials. My browser (IE 8) is set to use integrated windows authentication and automatically logon in the local intranet.
What am I doing wrong?
Here is my IIS 7.5 configuration. The Application pool is running in Integrated mode:
web.config:
<?xml version="1.0" encoding="UTF-8"?>
<configuration>
<system.web>
<compilation debug="true" />
<authentication mode="Windows" />
</system.web>
<system.serviceModel>
<behaviors>
<serviceBehaviors>
<behavior name="">
<serviceMetadata httpGetEnabled="true" />
<serviceDebug includeExceptionDetailInFaults="false" />
</behavior>
</serviceBehaviors>
</behaviors>
<serviceHostingEnvironment aspNetCompatibilityEnabled="true" />
</system.serviceModel>
</configuration>
ServiceReferences.ClientConfig:
<configuration>
<system.serviceModel>
<bindings>
<basicHttpBinding>
<binding name="BasicHttpBinding_ISecurityService" maxBufferSize="2147483647"
maxReceivedMessageSize="2147483647">
<security mode="TransportCredentialOnly" />
</binding>
</basicHttpBinding>
</bindings>
<client>
<endpoint address="http://localhost:85/SecurityService/SecurityService.svc"
binding="basicHttpBinding" bindingConfiguration="BasicHttpBinding_ISecurityService"
contract="SecurityServiceReference.ISecurityService" name="BasicHttpBinding_ISecurityService" />
</client>
</system.serviceModel>
</configuration>

Answer 1

I am only guessing on the WCF part that this may not be set up properly for windows authentication. The wcf service needs to be configured to authenticate the requests from IIS with windows credentials as well. So, in that case, I would expect that there needs to be a behavior in the service demanding this. Check to see if you have configured these correcntly. servicecredentials and clientcredentials.
serviceCredentials
Security behaviours in WCF