WCF Exception: Security settings for this service require 'Anonymous' Authentication but it is not enabled for the IIS application that hosts this service

Windows authentication is well suited for scenarios in which your users have domain credentials. Using basicHttpBinding with TransportCredentialOnly security mode option, users are authenticated by using Windows authentication.

Here is an article described how to implement this.

How to: Use basicHttpBinding with Windows Authentication and TransportCredentialOnly in WCF from Windows Forms

http://msdn.microsoft.com/en-us/library/ff648505.aspx

These two blogs written by well-known WCF experts described the same scenario as well.

Preventing Anonymous Access

http://blogs.msdn.com/b/drnick/archive/2007/03/23/preventing-anonymous-access.aspx

http://blogs.msdn.com/b/wenlong/archive/2006/05/18/600603.aspx

However, customer got follow error using .Net 4.0 even follow the exactly same steps.

[NotSupportedException: Security settings for this service require 'Anonymous' Authentication but it is not enabled for the IIS application that hosts this service.]

   System.ServiceModel.Activation.HostedAspNetEnvironment.ValidateHttpSettings(String virtualPath, Boolean isMetadataListener, Boolean usingDefaultSpnList, AuthenticationSchemes& supportedSchemes, ExtendedProtectionPolicy& extendedProtectionPolicy, String& realm) +194425

   System.ServiceModel.Channels.HttpChannelListener.ApplyHostedContext(String virtualPath, Boolean isMetadataListener) +104

   System.ServiceModel.Channels.HttpTransportBindingElement.BuildChannelListener(BindingContext context) +156

   System.ServiceModel.Channels.Binding.BuildChannelListener(Uri listenUriBaseAddress, String listenUriRelativeAddress, ListenUriMode listenUriMode, BindingParameterCollection parameters) +166

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