I've managed to isolate a problem to workstations with the Novell Client
(4.91 SP2, though SP4 also is broken) who use IE to log in to NetStorage.
It will work, but going to File -> Download or File -> Upload causes IE to
repeatedly prompt for authentication information. Ultimately, the file
can't UL or DL. Doulbe-clicking on the file will get it to download, but
there is no way to upload a file on these stations, even in Text Mode.

But it works just fine on stations using IE that do not have the Client
installed. From what I remember of the arcitecture of NetStorage, using IE
to log in will leverage XTier to use your desktop login credentials when
talking to XTier enabled services such as NetStorage.

Firefox, or any other browser that requires a log in, works just fine.

Looking at log entries on the server and I can see a big different in size
of requests between the IE/Xtier logins and the non-XTier logins:

Failure: - - [22/Jan/2009:13:37:48 -0800] "POST
/NetStorage/servlet/DownloadFile HTTP/1.1" 401 1768 - - [22/Jan/2009:13:37:48 -0800] "POST
/NetStorage/servlet/DownloadFile HTTP/1.1" 401 705

Success (Firefox): - - [22/Jan/2009:13:40:56 -0800] "POST
/NetStorage/servlet/DownloadFile HTTP/1.1" 401 705 - - [22/Jan/2009:13:40:56 -0800] "POST
/NetStorage/servlet/DownloadFile HTTP/1.1" 200 15360

The request sizes are markedly different as well.

This is on NW65SP7. Other than have users use non-IE browsers when using
machines with the Novell Client installed, is there a solution to this?

Novell, it does a network good