We have a system where a user can create a contact list with different groups and can sync those contacts from server to iPhone address book book using a CardDAV Account. We are using C#.net for development and back end is SQL server 2008 .
Is it possible to use a server to fetch data from our exiting database and accessible to client?
Is it possible to have authentication from a database instead of windows user login ?
Regarding fetching data from your database. It all depends on how you need to store your contacts in you database. Currently our Server Engine can only store iCalendar objects (a single calendar event) as a blob. It can not serialize vCard and iCalendar (but it still can parse iCalendar to some extent). We are working to provide vCard and iCalendar parsing and serialization. If you need to generate iCalendar object from your data in a database you can probably use any other third-party library for now.
Regarding authentication. IT Hit WebDAV Server Engine is independent of authentication schema. You can authenticate against your existing user storage using Basic, Digest, NTLM/Kerberos or any other protocol. To generate a sample code just run the ASP.NET or HttpListener CalDAV/CardDAV Server Application wizard in Visual Studio and select Basic or Digest on Authentication step (see screenshot below). Your logins will be stored in web.config or app.config in authentication section in this case.