Yes friends, it took me a while to find a solution for this problem. But I think its solved.
The problem is caused by the more secure Windows7 and Windows2008R2.
“ Okay, after trying random things I have come to learn that if I use \\server.address\DavWWWRoot\ I can connect to the server via WebDAV, as it turns out windows sees "DavWWWRoot" as some sort of token which tells the computer to use the DAV protocol rather than just plain HTTP. This is well and good if I wanted a system only over port 80 however I still want the random ssl encrypted port. From what I can understand \\server.address@SSL\DavWWWRoot should give me HTTPS access to the webdav server. this however doesn’t work, I am still presented with the same two Windows Security Credentials pop up boxes. and now when I just try to press ok through them a pop up window shows up saying "The Folder you entered does not appear to be valid. Please choose another." Which I know is untrue because I can navigate to the page in internet explorer via https://server.address/ and it resolves, I can also still connect to this via other Dav Services. Now that I know my DAV server does work with window 7 I would really like to to work under the specified conditions. “
The first step:
Windows 7 is more secure than older version of windows, some things are just going to take some adjusting to.
Try to change the Kerberos encryption type.
1. Open gpedit.msc.
2. Find the policy under Windows Settings -> Security Settings -> Local Policies -> Security Options ->Network Security: Configure encryption types allowed for Kerberos
3. Configure the policy. If it is not configured, actually both DES cipher suites are disabled. I suggest that you enable all the suits.
The second step:
To Disable the Update Root Certificates Component by Using Group Policy
See Appendix B, "Learning About Group Policy and Updating Administrative Templates,” for information about using Group Policy. Ensure that your Administrative templates have been updated, and then edit an appropriate GPO.
Click Computer Configuration, click Administrative Templates, click System, click Internet Communication Management, and then click Internet Communication settings.
In the details pane, double-click Turn off Automatic Root Certificates Update, and then click Enabled.
Important You can also restrict Internet access for this and a number of other components by applying the Restrict Internet communication policy setting, which is located in Computer Configuration/Administrative Templates/System/Internet Communication Management. For more information about this Group Policy and the policies that it controls, see Appendix C, "Group Policy Settings Listed Under the Internet Communication Management Key.
For the official link take a look at WebDAV Web Folders in Windows Explorer, Windows 7