When you attempt to use the Add a Network Place Wizard to add a FQDN Web folder that requires basic authentication to My Network Places, you can't.

To workaround this problem, use the <NetBIOS_Server_Name>\<UserName> syntax. If the FQDN is www.server01.com, and the server's NetBIOS name is server01, use server01\<UserName> in the User Name box when prompted.