In your settings under IIS manager, your sharepoint site, authentication, enable basic authentication.
Another note, in your document library settings, versioning, Require documents to be checked out before they can be edited, set to no. This will allow you to easily copy/replace files in the document library. Versioning still works! Every time you overwrite a file it keeps the old version.
But what I cannot figure out is how to use folders and filenames with spaces in them. I cant mount a url with a space and if I mount the base server and then do an ls, I wont see any folders/files with spaces in them. This is very annoying because my document library is called "Shared Documents".
The only reason I know about the versioning is because I got all this working on my mac. Although I could mount the sharepoint server using the built in webdav client in finder (go, connect to server,
http://sharepoint) I could not write to the sharepoint mount. I had to use a client like Cyberduck to allow me to write files to the sharepoint server. Working great!!
Let me know if you figure out spaces please!!