To get it to work with IIS try using this code before setting your "$auth = 0" and the "if (isset($PHP_AUTH_USER) && isset($PHP_AUTH_PW))"
<?php
//////////////////////////////////////////
if ($PHP_AUTH_USER == "" && $PHP_AUTH_PW == "" && ereg("^Basic ", $HTTP_AUTHORIZATION))
{
list($PHP_AUTH_USER, $PHP_AUTH_PW) =
explode(":", base64_decode(substr($HTTP_AUTHORIZATION, 6)));
}
//////////////////////////////////////////
?>
It worked for me on IIS 5 and PHP 4 in ISAPI