NTLM proxy no longer works

After upgrading Archiva from 1.3.5 to 1.4-M2 NTLM proxy no longer works. This is most likely caused by switching to wagon http.

2012-02-02 10:46:48,582 [qtp1120643297-21] DEBUG org.apache.archiva.proxy.common.DebugTransferListener - transferInitiated for resource org/codehaus/plexus/plexus-utils/1.1/plexus-utils-1.1.pom on repository url http://repo1.maven.org/maven2/
2012-02-02 10:46:48,834 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "GET http://repo1.maven.org/maven2/org/codehaus/plexus/plexus-utils/1.1/plexus-utils-1.1.pom HTTP/1.1[\r][\n]"
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Cache-control: no-cache[\r][\n]"
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Cache-store: no-store[\r][\n]"
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Pragma: no-cache[\r][\n]"
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Expires: 0[\r][\n]"
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Accept-Encoding: gzip[\r][\n]"
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Host: repo1.maven.org[\r][\n]"
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Proxy-Connection: Keep-Alive[\r][\n]"
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "[\r][\n]"
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.headers - >> GET http://repo1.maven.org/maven2/org/codehaus/plexus/plexus-utils/1.1/plexus-utils-1.1.pom HTTP/1.1
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.headers - >> Cache-control: no-cache
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.headers - >> Cache-store: no-store
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.headers - >> Pragma: no-cache
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.headers - >> Expires: 0
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.headers - >> Accept-Encoding: gzip
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.headers - >> Host: repo1.maven.org
2012-02-02 10:46:48,835 [qtp1120643297-21] DEBUG org.apache.http.headers - >> Proxy-Connection: Keep-Alive
2012-02-02 10:46:49,116 [qtp1120643297-21] DEBUG org.apache.http.wire - << "HTTP/1.1 407 Proxy Authentication Required[\r][\n]"
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.wire - << "Proxy-Authenticate: NTLM[\r][\n]"
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.wire - << "Proxy-Authenticate: BASIC realm="Auth_Seq_NTLM_to_ldap"[\r][\n]"
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.wire - << "Cache-Control: no-cache[\r][\n]"
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.wire - << "Pragma: no-cache[\r][\n]"
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.wire - << "Content-Type: text/html; charset=utf-8[\r][\n]"
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.wire - << "Proxy-Connection: close[\r][\n]"
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.wire - << "Set-Cookie: BCSI-CS-41D6D8BAA7362CE4=2; Path=/[\r][\n]"
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.wire - << "Connection: close[\r][\n]"
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.wire - << "Content-Length: 895[\r][\n]"
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.wire - << "[\r][\n]"
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.headers - << HTTP/1.1 407 Proxy Authentication Required
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.headers - << Proxy-Authenticate: NTLM
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.headers - << Proxy-Authenticate: BASIC realm="Auth_Seq_NTLM_to_ldap"
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.headers - << Cache-Control: no-cache
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.headers - << Pragma: no-cache
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.headers - << Content-Type: text/html; charset=utf-8
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.headers - << Proxy-Connection: close
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.headers - << Set-Cookie: BCSI-CS-41D6D8BAA7362CE4=2; Path=/
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.headers - << Connection: close
2012-02-02 10:46:49,118 [qtp1120643297-21] DEBUG org.apache.http.headers - << Content-Length: 895
2012-02-02 10:46:49,157 [qtp1120643297-21] ERROR org.apache.http.client.protocol.RequestProxyAuthentication - Proxy authentication error: Credentials cannot be used for NTLM authentication: org.apache.http.auth.UsernamePasswordCredentials
2012-02-02 10:46:49,157 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "GET http://repo1.maven.org/maven2/org/codehaus/plexus/plexus-utils/1.1/plexus-utils-1.1.pom HTTP/1.1[\r][\n]"
2012-02-02 10:46:49,157 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Cache-control: no-cache[\r][\n]"
2012-02-02 10:46:49,157 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Cache-store: no-store[\r][\n]"
2012-02-02 10:46:49,157 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Pragma: no-cache[\r][\n]"
2012-02-02 10:46:49,157 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Expires: 0[\r][\n]"
2012-02-02 10:46:49,157 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Accept-Encoding: gzip[\r][\n]"
2012-02-02 10:46:49,157 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Host: repo1.maven.org[\r][\n]"
2012-02-02 10:46:49,157 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Proxy-Connection: Keep-Alive[\r][\n]"
2012-02-02 10:46:49,157 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "Cookie: BCSI-CS-41D6D8BAA7362CE4=2[\r][\n]"
2012-02-02 10:46:49,157 [qtp1120643297-21] DEBUG org.apache.http.wire - >> "[\r][\n]"