User error???

I have a clean test site of D6.12 installed on a Dreamhost shared hosting server.

I installed Webdav, 6.x-1.0, RC8. I enabled Webdav and Webdav for file systems. Using an FTP client, I created a folder in the default Drupal files directory called "test_webdav", and copied a small jpg to that directory. I used the Webdav add function to create an entry with file system name "webdav_base" with the path "/files/test_webdav/".

So, using Firefox 3, and logged into my site as user1, now I go to http://myurl.org/webdav/. I get a screen showing the page "'WebDAV Root' WebDAV folder..." and listing "Return to mysite.org" and "webdav_base" -- created on December 31, 1969 at 8 pm.

I click on that, and am greeted with an empty directory view, offering only a return icon to "Parent Folder". No sign of the file I put in there via ftp. I tried dragging another jpg file to the window, the link, the icon, etc. and each time Firefox simply tries to open the file and display it. The file is never transferred to the directory.

I tried "Add Network Place" in WinXP-SP3. It requests a username and password. I entered the Drupal username and password for user1 but it does not appear to accept that -- it keeps looping infinitely, requesting a username and password.

As an experiment, I logged out of the site and directed Firefox to "http://mysite.org/webdav/" and had the same infinite loop requesting the username and password.

So, what am I doing wrong?

BTW: may I make one small suggestion:
Change the name of the navigation menu entry under Administer/Site Configuration. It took me a while to figure out that "Server" was a reference to "Webdav Server". I'm used to looking for the module name.