Thanks Rosario for the information--much appreciated.
What you are describing is exactly what I am experiencing. Having never dealt with a WebDav before I assumed that by setting up the credentials in the admin side, and setting permissions for users, the result would be a single sign on for users with the required role permissions. While it is a bummer to know that is not possible, it is nice to know so I dont continue to try to track down an impossibility. We were hoping that WebDav would help us to mimic the file handling that we had in 1.9 now that we are in 2.6, but it doesn't look to be so.
Thanks again for your help though!