ive set up a scenario on my version of hfs:
http://bmartino1.dyndns.org/testing/(for the account that will need access...
username: test
passsword: test
okay, i might be not understanding what you are trying to tell me...
as i (believe ) that i have done what you have posted, but the hfs login still takes over the folder...
upon adding the same folder hfs renames it, i rename it to the same name (see setup.png)
Issues, when traversing to the folder, the text document should be seen, but no access to download or read it, until log in
traversing to the path brings the login... eventually to hfs restricted access page... (see issue.png)
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i will try a new idae next, because i have them both under the same name...
using html and iframes two 2 different paths...
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Thank you for your help and support