From a Windows 7-based computer or from a Windows Server 2008 R2-based computer, you access a WebDAV folder, such as http://Parent_Folder/Child_Folder, where Child_Folder is configured for WebDAV and Parent_Folder is not configured for WebDAV. When you try to use Add a network connection, you receive the following error message:
The folder you entered does not appear to be valid. Please choose another.
This issue occurs because Windows tries to verify both the parent and the parent's subfolders. If the parent folder is not configured for WebDAV, the connection attempt fails.
To work around this issue, you can map a drive to the WebDAV target path. To prevent use of default credentials while you map the WebDAV path, select the Connect using different credentials check box on the Map Network Drive screen. Then, you will be prompted for credentials explicitly.
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.