therefore, it turns out that this is not a colon problem .... this is a problem with the authentication scheme.
first we used:
curl_setopt($curl_conn, CURLOPT_HTTPAUTH, CURLAUTH_BASIC);
and changing to:
curl_setopt($curl_conn, CURLOPT_HTTPAUTH, CURLAUTH_ANY);
fixed problem.
Our test on another server had its drawbacks - IIS on Windows was running on the server that was running, apache on linux was running on the production server with which we had problems.
So, I repeat: there seems to be no problem using usernames or passwords containing curling colons. this explains why there was no documentation on this issue.
Sorry for jumping to conclusions and thanks for the help.
jaminto
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