Can't add HTTP Network Place in Windows 7

Not being able to add an HTTP Network Place was previously a problem in Windows Server 2003 and Windows Vista. You'd assume that in Windows 7 they would have sorted this, but no.
There' still no Microsoft hotfix either, shockingly!

Anyway, there's loads of supposed "fixes" out there, some people have reportedly tried all of them with no success, and some people have given up and used third-party software instead.

I tried all the fixes, and found only one that sorted my problem, and I've detailed how to do this with the instructions below.

The problem apparently lies in the authentication of the Web Client service within Windows 7, and with a simple registry change, I enabled the Web Client to authenticate and therefore allow me to add an HTTP Network Place within Windows 7.

Open up Registry Editor, in Windows 7 this can be done by clicking the Start menu and typing 'regedit'.

Now we need to navigate to the relevant part of the registry, go to:
HKEY_LOCAL_MACHINESYSTEMCurrentControlSetservicesWebClientParameters

You should now have a screen that looks like the below;

(click image to enlarge)

Right-Click on BasicAuthLevel and select Modify

In the screen that opens, change the "1" to a "2" and click OK.

Close the Registry Editor.

Now we need to restart the WebClient service. Alternatively, you can reboot your machine, but if you've got a lot going on then rebooting the WebClient service manually is easy.

Go to the Start menu, then Control Panel. In Control Panel go to System & Security and then Administrative Tools. Open Services.

Scroll down the list to the WebClient service, right-click and hit restart.

(click image to enlarge)

Once the service has successfully stopped and restarted, you're done!
Now try adding your HTTP Network Place again and it should work.