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This whole reduce-the-surface-area business is making life for developers a bit hard. Else, why would something as simple as unchecking a box and checking another become so complex? In Good old IIS6 you had to just disable anonyous access and enable Integrated Windows or Basic Authentication.
If you are using IIS7 with Windows Server 2008 (guess it is same with Vista also), here is how you can enable these authentication types.
Go to Server Manager > Roles > IIS Server
Right click on IIS Server and choose Add Role Services
Enable the required roles
Restart IIS7 and go to the Authentication option for the website or server
Now you can see the new options to enable the desired auth modes.
Enable the required auth types here.