In Adobe Dreamweaver CS3, when you try to make a WebDAV connection to a server using Basic authentication for the PROPFIND command, the connection fails and the following message is displayed:
"Cannot display the remote folder: An HTTP WebDAV error occurred. Dreamweaver cannot get a listing for the folder you specified. Make sure you have proper authorization on the server, and the server is properly configured. Make sure the remote folder is available or select a different one by clicking Manage Sites. To try again, click the Refresh button in the Files panel."
The WebDAV connection is successful with earlier versions of Dreamweaver.
This problem only occurs when the WebDAV server doesn't require authentication for the OPTION command, but the server does require Basic authentication for the PROPFIND command. Most WebDAV users are not affected by this issue. (Ref. 226989)
Adobe has created a fix for this issue. Download the fix for your operating system and install it using the following instructions: