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Sun's JVM gets *seamless* NTLM support in soon to be released 1.4.2_02!
Microsoft has dropped support for the Microsoft VM and this leaves applets in an uncertain position. Sure, you can just install Sun's JVM but it won't work on your Microsoft IIS-based intranet if you are running NTLM. I have seen this problem at several clients where “single sign on” is essential and NTLM is the mechanism in use.