I thought I should share my experience with WebDav.
Just recently installed Server 2008 R2.. I couldnt make SCCM work well with webdav. Also discovered that WebDav_schema.xml is not updating even though you have changed it in MMC IIS console.
To fix this..
navigate to %windir%\System32\inetsrv\config\schema
take ownership of webdav_schema.xml
remove the readonly attributes
edit them to these:
<attribute name="allowAnonymousPropfind" type="bool" defaultValue="true" />
<attribute name="allowInfinitePropfindDepth" type="bool" defaultValue="true" />
<attribute name="allowCustomProperties" type="bool" defaultValue="false" />
save it and continue with sccm.
it worked for me.