Doesn’t work. Stop trying. Give up. Sure it works in XP. And the web will lead you on a lot of wild goose chases but basically, the problem is windows vista (and windows 7) don’t really support webdav. They say they do, but it is buggy, and there are a million things that break it. I tried every documented "solution" on the web – nothing works. (I can not access it either in webdav – I’m using Win7 64bit version.)
If you want to connect to a webdav server (such as Confluence wiki) so you can drag and drop files, do this:
1) Download and install: http://www.independentsoft.com/independentdav/index.html
2) Once you have it installed (note you may need .net but it comes with vista)
Open it and past the url into the main bar: http://serverdomain.com/wiki/plugins/servlet/webdav (for confluence – use what ever your path is)
3) enter user name and password from wiki (leave domain blank)
Viola – enjoy dragging and dropping files into confluence.