SharePoint Server 3.0 Gives Error 500 After Changing Domain Password

I have a SharePoint 3.0 server.

Today I changed the domain user password.

I am logging in from a WORKGROUP (i.e., non domain) computer.

Then it gives error 500 and does not proceed to give me a login prompt to supply the new password! Now there is no way to log in.

Ironically, if I test this with Firefox 2.0 I can get the login prompt!

So here is the fix.

It is breaking because your IE is sending an incorrect credentials to SharePoint 3.0, and the reason is because the server is (most likely) in your Internet and the IE, knowing the trusted site, it sends out incorrect credentials. When this happens though, it is crashing the SharePoint 3.0.

To get around this issue, change the Security level of the SharePoint 3.0 server to the default Internet level, then the login prompt should show up.