Login troubles in Permalinks post activation

I'm running WordPress 2.0.5, WPG2 2.0 and G2:

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Gallery version = 2.2-svn core 1.1.21
PHP version = 4.4.4 apache
Webserver = Apache/1.3.37 (Unix) mod_interchange/1.34 mod_perl/1.28 PHP/4.4.4 mod_ssl/2.8.28 OpenSSL/0.9.7e-p1
Database = mysqlt 3.23.59-nightly-20050301, lock.system=flock
Toolkits = ArchiveUpload, Exif, Getid3, LinkItemToolkit, NetPBM, SquareThumb, Thumbnail, Gd, ImageMagick
Acceleration = none, none
Operating system = FreeBSD spj-66-129-2-175-col.siteplus.com 6.1-RELEASE-p8 FreeBSD 6.1-RELEASE-p8 #4: Fri Sep 29 07:51:05 EDT 2006

.:/usr/obj/usr/src/sys/SMP i386
Default theme = siriux
gettext = enabled
Locale = en_US
Browser = Mozilla/4.0 (compatible; MSIE 6.0; Windows NT 5.1; SV1; .NET CLR 1.1.4322)
Rows in GalleryAccessMap table = 25
Rows in GalleryAccessSubscriberMap table = 13
Rows in GalleryUser table = 3
Rows in GalleryItem table = 11
Rows in GalleryAlbumItem table = 3
Rows in GalleryCacheMap table = 0

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When setting up G2 permalinks through the embedded WordPress app I'm greeted with a pop-up login screen similiar to one that is generated with an .htaccess file. So, I try to login with my admin username and pass though it never succeeds. Here is the page: http://www.creativecrib.com/wordpress/wp-gallery2.php?g2_view=core.SiteAdmin&g2_subView=rewrite.AdminRewrite

Any reason for the pop-up login screen even though I'm already logged in? I've attached a screen capture.

Thanks,

David