offerBasic:false not working

Hello,

I have modified the sample project to add offerBasic: false but I am still prompted to enter credentials after which I get the expected authenticated results from the local machine account. Any idea what I might be doing wrong? Must I be participating in a domain for SSPI w/NTLM to work or can I also expect it to work locally on my development machine?

Windows 7 Home Premium, 64bit

E:\dev\sspi>node -v
v0.10.32

E:\dev\sspi>npm list node-sspi
└── node-sspi@0.1.4

E:\dev\sspi>npm list express
└── express@3.4.3

 versions:
  { http_parser: '1.0',
    node: '0.10.32',
    v8: '3.14.5.9',
    ares: '1.9.0-DEV',
    uv: '0.10.28',
    zlib: '1.2.3',
    modules: '11',
    openssl: '1.0.1i' },
 arch: 'x64',
 platform: 'win32',

index.js

'use strict';

var express = require('express');
var app = express();
var server = require('http').createServer(app);
app.configure(function () {
  app.use(function (req, res, next) {
    var nodeSSPI = require('node-sspi');
    var nodeSSPIObj = new nodeSSPI({
      retrieveGroups: true, offerBasic: false
    });
    nodeSSPIObj.authenticate(req, res, function(err){
      res.finished || next();
    });
  });
  app.use(function (req, res, next) {
    var out = 'Hello ' + req.connection.user + '! You belong to following groups:<br/><ul>';
    if (req.connection.userGroups) {
      for (var i in req.connection.userGroups) {
        out += '<li>'+ req.connection.userGroups[i] + '</li><br/>\n';
      }
    }
    out += '</ul>';
    res.send(out);
  });
});
// Start server
var port = process.env.PORT || 3000;
server.listen(port, function () {
  console.log('Express server listening on port %d in %s mode', port, app.get('env'));
});

abbr / NodeSSPI

offerBasic:false not working #3