Can't login via protocol integration with basic authentication

I am trying to log into the milestone server using the protocol integration. I am providing the username and password and setting it to basic authentication but it returns a 401. Windows authentication works fine.

You need to use SSL, see - http://doc.developer.milestonesys.com/html/index.html?base=gettingstarted/intro_soap_protocols.html&tree=tree_3.html