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AIF webservice 401 unauthorized using SOAP w/ NTLM for custom Http port

I've spent days searching for a solution to get a simple HTTP web service, salesorder.read, working off of a JAVA client to no avail. We're trying to achieve communication first via NTLM as this was suggested in many forums, but I'm open to other suggestions however, I haven't had any luck with SOAP UI.

Configuration:

-AX 2012 R3

- Changed HTTP configuration binding from Windows to NTLM (as suggested in many posts)

- IIS

- Authentication set to Windows Authentication

- Windows authentication providers; NTLM set as primary

- SOAP UI

- Basic configuration w/ Authentication set to NTLM

- Verified lmcompatibilitylevel set to 1 on server

The response has ever been "An error occurred." or "401 - Unauthorized: Access is denied due to invalid credentials. You do not have permission to view this directory or page using the credentials that you supplied."

Tue Dec 20 11:06:41 EST 2016:DEBUG:Stale connection check
Tue Dec 20 11:06:41 EST 2016:DEBUG:Attempt 1 to execute request
Tue Dec 20 11:06:41 EST 2016:DEBUG:Sending request: POST /MicrosoftDynamicsAXAif60/WebSalesOrderRead/xppservice.svc HTTP/1.1
Tue Dec 20 11:06:41 EST 2016:DEBUG:Receiving response: HTTP/1.1 401 Unauthorized
Tue Dec 20 11:06:41 EST 2016:DEBUG:Connection can be kept alive indefinitely
Tue Dec 20 11:06:41 EST 2016:DEBUG:Target requested authentication
Tue Dec 20 11:06:41 EST 2016:DEBUG:Authorization challenge processed
Tue Dec 20 11:06:41 EST 2016:DEBUG:Authentication scope: NTLM @<website>:80
Tue Dec 20 11:06:41 EST 2016:INFO:<website>:80 requires Windows authentication
Tue Dec 20 11:06:41 EST 2016:DEBUG:Found credentials
Tue Dec 20 11:06:41 EST 2016:DEBUG:Attempt 2 to execute request

Event viewer on the server shows a similar error, "Object Server 01: An error has occurred in the services framework. Method: AifMessageInspector::AfterReceiveRequest. Error: System.Security.SecurityException: The user name or password is incorrect."

Please, any insight would be appreciated.

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