http-auth-type negotiate broken after upgrade

From a customer:

"I'm working on both the upgrade from 1.6 to 1.7 and passing through
Windows credentials so our developers won't have to manually enter a
username/password. On TortoiseSVN 1.6.16, I found the registry setting to
enable negotiate as an http-auth-type even when connecting over unencrypted
http (specifically, adding a group under
HKCU\Software\Tigris.org\Subversion\servers and explicitly allowing
negotiate for it). When I upgraded to Tortoise 1.7.4, however, this stopped
working.

Using WireShark, I saw that the initial response from the server would be
exactly the same (401 Unauthorized), but where 1.6 would immediately send
back a Authorization: Negotiate header, 1.7 never seems to try that method.
Eventually, I found that I could work around this by specifying serf as the
http-library, but I figured (1) we'd like to stay as close to stock
TortoiseSVN as possible, for ease of maintenance, and (2) you probably want
to fix the interaction with neon regardless.

Both TortoiseSVN clients were standard downloads; the only special
configuration (beyond the aforementioned server grouping) is to specify a
different diff tool and some global ignores. I saw that both clients were
using neon 0.29.6; 1.6 is using serf 0.7.2, while 1.7 is using serf 1.0.1.
Any ideas what's going on there, or what it would take to fix it so we
could use the default library?"

Any ideas would be greatly appreciated.
TIA.

-- 
Regards,
Graeme Hodgson
Technical Support Engineer
WANdisco plc.
Office: +44.(0)114.303 9985 X733
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