How many of tried accessing SharePoint application from the server where it is hosted??!!
Interesting. I tried that. I have been prompted for user authentication whenever I access the site. To avoid this u should disable the Loop Back Check in the server. Its a feature in windows Server.
How to do that?. Yeah we can do it with the help of PowerPoint shell.
New-ItemProperty HKLM:\System\CurrentControlSet\Control\Lsa -Name "DisableLoopbackCheck" -value "1" -PropertyType dword