>I have just installed a SQL 7.0 server as a PDC and another server as a member which is an IIS server.
>I can see the drives on my PDC and the PDC can see the drives on the member IIS but when I try to connect to the Member IIS it asks for a password and what ever password I use is invalid.
>

It sounds like the member server has not been registered as a member of the domain or the user has never logged into the domain before accessing the IIS server. If the IIS server isn't aware that it's a member of the domain, any login will be processed via local authentication - the account would have to exist on the IIS server rather than the domain server in this case. Another possible scenario is that the user has never logged into the domain before accesing the IIS server, in which case it will again attempt to authenticate the user locally rather than at the domain level. I'd make sure that you forced the user to login to the domain before allowing access to the IIS server to clarify the issue - if this works, the problem is the latter of the two possibilities I mentioned, otherwise, the former is the more likely cause.