Recently i was leading a project where we had to develop a IPhone, Black Berry and Andriod compatible web application which could be configured to use windows authentication. The problem we ran into was that the application won't run on andriod with windows authentication, after searching for solution i found the following link which made it clear that andriod didn't support NTLM authentication at the moment and is working on its solution but there is not time line provided as to when we could expect the solution to be out in the market.
http://code.google.com/p/android/issues/detail?id=4962
http://code.google.com/p/android/issues/detail?id=4962