This is mostly so I don’t forget, but if it helps you, well that’s cool too. I had to google search every which way to sunday, then searched the house of fusion CF-Talk list before finding my answer…. Thank you steven Erat!
The jist is when you use CFHTTP to talk to IIS it may send it’s reply back in a compressed state. CF no likey that very much and you’ll end up getting the dreaded "Connection Failure". However the solution is simple. Add these two params to your CFHTTP and viola!
<cfhttpparam type="Header" name="TE" value="deflate;q=0">
Which according to Steven (who knows more about IIS than I do, clearly) tells IIS not to send it’s reply in a compressed state. BAM!! no more "Connection Failure".
Like I said, this is as much for me, as it is for you. I just don’t want to waste time searching again.