>Basic Authentication doesn't work for files. If you want to secure files or folders you need to use Windows Authentication. Basic Auth only works programmatically when challenging with the 401 Authorize request.
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>The only thing that secures folders and files directly is Windows Auth.

Thanks, what I ended up doing was to create two folders, dumped the files in each of them, and applied security. However, there are some issues at IIS in some of that. I thought I would deviate a little bit from the regular authentication I am doing so to do that within a few minutes at IIS level but it turned out it wasn't such a good idea. I am moving all that back to regular stuff so it will be handled as other authentication mechanisms I am using.