User auth issue with IsInRole()

I have a http listener app that is getting requests from a client app. Im trying to use AD user names and groups to control access to the app. When I originally built this proof of concept it worked like I had intended but now its busted and I can't figure out why.

What is supposed to happen is the server will run and when a client connects it prints out if they have access to a group that I'm testing. I remember seeing this work in the past but since then I modified the code for another test and now its kaput.

Any ideas?

Server Code:

Code:

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static void Main(string[] args)
{
    HttpListener listener = new HttpListener();
    listener.Prefixes.Add("http://myhost/");
    listener.AuthenticationSchemes = AuthenticationSchemes.Negotiate;
    listener.Start();
    bool validUser;

    while (true)
    {
        HttpListenerContext ctx = listener.GetContext();
        HttpListenerBasicIdentity identity = ctx.User.Identity as HttpListenerBasicIdentity;
        if (identity != null)
        {
            Console.WriteLine(identity.Name);
            Console.WriteLine(identity.Password);
        }
        string[] groups = new string[] {"Group1", "Group2", "Group3", "Group4" };
        Console.WriteLine("Checking user {0}", ctx.User.Identity.Name);
        foreach (string group in groups)
        {
            Console.Write("Group {0}:{1}", group, ctx.User.IsInRole(group)?"True":"False");
        }
    }
}

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Client Code:

Code:

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static void Main(string[] args)
{
    string userId, password;
    for (int i = 1; i < 5; ++i)
    {
        userId = string.Format("domin\User{0}", i);
        password = "pasword";
        HttpWebRequest req = (HttpWebRequest)WebRequest.Create("http://myhost/");
        req.UseDefaultCredentials = false;
        req.Credentials = new NetworkCredential(userId, password);
        req.GetResponse();
    }
}

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