Steps to recreate:
(1) Enable Http basic auth in httpd
(2) Uncomment <parameter name="HTTP-Authentication" ....> in http transport sender of client side axis2.xml
(3) Invoke echo sample
(4) Client sends the request
(5) Server sends "401 Authorization Required" header
(6) Client sends http headers including "Authorization: Basic" header. But there are no body for the second request.
(7) Since there are no request, client will not get any reply.
Note that echo_blocking_auth (when passing username, password as command line parameters) works correctly.