Hi Moodledh,
Thank you for your interest in our project! We're happy to help you out in getting your environment up and running. The simple answer to your question is: this was a harmless and minor bug in our documentation which we have since fixed and which can be downloaded from our
project page.
Here is a little more detail if you're interested in what caused this:
As someone mentioned below, the name of one our test servers was in the documentation when we made our ZIP file available for download. This reference was in the HTML we provided as a sample for enabling Windows Live ID login (in the file Microsoft_Services_for_Moodle_-_Getting_Started.rtf, on page 6). That HTML had a reference to an image on our test server, which your browser attempted to fetch, causing an authentication challenge because our test server is protected by a password. That is what you're seeing below.
The reference to our test server was harmless and not an "impersonation" request or a redirection. It was just a hard-coded reference to an image that we had on our test server, which crept into our documentation. It should have been a 'relative path' to the same image, and not a hard-coded address. The 'relative path' refers to the same image, except that it refers to the image on your server. Thus you would not get the authentication challenge since your server is open to your users (since they are logging into your server).
So this was a bug in our documentation, and unfortunately one that we should have caught in our QA cycle, but somehow it crept past us. Rest assured that we fixed it as soon as we found out about it and updated our ZIP file within a few hours after that.
To fix your installation:
1. Please visit the project page and download the latest ZIP file.
2. Please follow the instructions in the "Getting Started" document (Microsoft_Services_for_Moodle_-_Getting_Started.rtf).
3. Please make sure you carefully follow the instructions in the section "To enable Windows Live ID login". This should replace the HTML in your Moodle administration settings where the Windows Live ID authentication is enabled.
Here is the project page where you can get the latest ZIP file with the latest documentation and source code:
Thanks for downloading and using the plug-in. Please let us know if we can be of any further assistance.
Kosar
Microsoft Education Labs