IE doesn't treat local website as part of Intranet Zone

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I've come across a problem with how Internet Explorer determines which
websites are in the Local Intranet zone.

We've got a website on our internal network. People access this site using
http://<machinename>. IE sees it's a website in the local intranet zone.
But when we access the website with a FQDN, http://machinename.domain.com IE
doesn't think it's part of the local intranet zone. It thinks it's in the
Internet zone. This results in more security settings for this site, and for
that reason Intgrated Authentication no longer works (people have to log
on).

Why would IE handle these two sites as different when in fact they are the
same ? Only the URL is different. The settings for the Zone Intranet are
default (Include all site in local intranet).
Manually addding the FQDN site in the zone solves the problem, but every
user will have to do this.

Is this a bug or am I missing the point ?

Greetz
rwillkomm@xxxxxxxx



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