The following, ugly, changes in url-http.el seem to work, based on very very very limited testing....

Basically,

I changed url-http-handle-authentication so that if a change of buffer was made, it would return the new buffer, otherwise it would return nil.

Then in  url-http-parse-headers, I cut and pasted code for the 3XX redirect case that sets a flag for url-retrieve-synchronously to do the same thing for the  401 and 407 cases.

I apologize, instead of sending patches, I am just going to attach the two new functions.

(defun url-http-handle-authentication (proxy)
  (declare (special status success url-http-method url-http-data
   url-callback-function url-callback-arguments))
  (url-http-debug "Handling %s authentication" (if proxy "proxy" "normal"))
  (let ((auths (or (nreverse
   (mail-fetch-field
    (if proxy "proxy-authenticate" "www-authenticate")
    nil nil t))
 '("basic")))
(type nil)
(url (url-recreate-url url-current-object))
(auth-url (url-recreate-url
  (if (and proxy (boundp 'url-http-proxy))
      url-http-proxy
    url-current-object)))
(url-basic-auth-storage (if proxy
   ;; Cheating, but who cares? :)
   'url-http-proxy-basic-auth-storage
 'url-http-real-basic-auth-storage))
auth
(strength 0)
        (retval nil))

    ;; find strongest supported auth
    (dolist (this-auth auths)
      (setq this-auth (url-eat-trailing-space
      (url-strip-leading-spaces
this-auth)))
      (let* ((this-type
     (if (string-match "[ \t]" this-auth)
 (downcase (substring this-auth 0 (match-beginning 0)))
(downcase this-auth)))
    (registered (url-auth-registered this-type))
    (this-strength (cddr registered)))
(when (and registered (> this-strength strength))
 (setq auth this-auth
type this-type
strength this-strength))))

    (if (not (url-auth-registered type))
(progn
 (widen)
 (goto-char (point-max))
 (insert "<hr>Sorry, but I do not know how to handle " type
 " authentication.  If you'd like to write it,"
 " send it to " url-bug-address ".<hr>")
 (setq status t)
          (setq retval nil))
      (let* ((args (url-parse-args (subst-char-in-string ?, ?\; auth)))
    (auth (url-get-authentication auth-url
  (cdr-safe (assoc "realm" args))
  type t args)))
(if (not auth)
            (progn
              (setq success t)
              (set retval nil))
 (push (cons (if proxy "Proxy-Authorization" "Authorization") auth)
url-http-extra-headers)
 (let ((url-request-method url-http-method)
(url-request-data url-http-data)
(url-request-extra-headers url-http-extra-headers)
                (response-buffer nil))
   (setq response-buffer
                  (url-retrieve-internal url url-callback-function
                                         url-callback-arguments))
            (url-http-debug "Handling authentication return buffer is %s" response-buffer)
            (setq retval response-buffer)))))
    (url-http-debug "Handling authentication retval is %s 2:" retval)
    retval))


and

;; GET HERE
(defun url-http-parse-headers ()
 "Parse and handle HTTP specific headers.
Return t if and only if the current buffer is still active and
should be shown to the user."
  ;; The comments after each status code handled are taken from RFC
  ;; 2616 (HTTP/1.1)
  (declare (special url-http-end-of-headers url-http-response-status
   url-http-response-version
   url-http-method url-http-data url-http-process
   url-callback-function url-callback-arguments))

  (url-http-mark-connection-as-free (url-host url-current-object)
   (url-port url-current-object)
   url-http-process)

  (if (or (not (boundp 'url-http-end-of-headers))
 (not url-http-end-of-headers))
      (error "Trying to parse headers in odd buffer: %s" (buffer-name)))
  (goto-char (point-min))
  (url-http-debug "url-http-parse-headers called in (%s)" (buffer-name))
  (url-http-parse-response)
  (mail-narrow-to-head)
  ;;(narrow-to-region (point-min) url-http-end-of-headers)
  (let ((connection (mail-fetch-field "Connection")))
    ;; In HTTP 1.0, keep the connection only if there is a
    ;; "Connection: keep-alive" header.
    ;; In HTTP 1.1 (and greater), keep the connection unless there is a
    ;; "Connection: close" header
    (cond
     ((string= url-http-response-version "1.0")
      (unless (and connection
  (string= (downcase connection) "keep-alive"))
(delete-process url-http-process)))
     (t
      (when (and connection
(string= (downcase connection) "close"))
(delete-process url-http-process)))))
  (let ((buffer (current-buffer))
(class nil)
(success nil)
;; other status symbols: jewelry and luxury cars
(status-symbol (cadr (assq url-http-response-status url-http-codes)))
;; The filename part of a URL could be in remote file syntax,
;; see Bug#6717 for an example.  We disable file name
;; handlers, therefore.
(file-name-handler-alist nil))
    (setq class (/ url-http-response-status 100))
    (url-http-debug "Parsed HTTP headers: class=%d status=%d" class url-http-response-status)
    (url-http-handle-cookies)

    (case class
      ;; Classes of response codes
      ;;
      ;; 5xx = Server Error
      ;; 4xx = Client Error
      ;; 3xx = Redirection
      ;; 2xx = Successful
      ;; 1xx = Informational
      (1 ; Information messages
       ;; 100 = Continue with request
       ;; 101 = Switching protocols
       ;; 102 = Processing (Added by DAV)
       (url-mark-buffer-as-dead buffer)
       (error "HTTP responses in class 1xx not supported (%d)" url-http-response-status))
      (2 ; Success
       ;; 200 Ok
       ;; 201 Created
       ;; 202 Accepted
       ;; 203 Non-authoritative information
       ;; 204 No content
       ;; 205 Reset content
       ;; 206 Partial content
       ;; 207 Multi-status (Added by DAV)
       (case status-symbol
((no-content reset-content)
 ;; No new data, just stay at the same document
 (url-mark-buffer-as-dead buffer)
 (setq success t))
(otherwise
 ;; Generic success for all others.  Store in the cache, and
 ;; mark it as successful.
 (widen)
 (if (and url-automatic-caching (equal url-http-method "GET"))
     (url-store-in-cache buffer))
 (setq success t))))
      (3 ; Redirection
       ;; 300 Multiple choices
       ;; 301 Moved permanently
       ;; 302 Found
       ;; 303 See other
       ;; 304 Not modified
       ;; 305 Use proxy
       ;; 307 Temporary redirect
       (let ((redirect-uri (or (mail-fetch-field "Location")
      (mail-fetch-field "URI"))))
(case status-symbol
  (multiple-choices    ; 300
   ;; Quoth the spec (section 10.3.1)
   ;; -------------------------------
   ;; The requested resource corresponds to any one of a set of
   ;; representations, each with its own specific location and
   ;; agent-driven negotiation information is being provided so
   ;; that the user can select a preferred representation and
   ;; redirect its request to that location.
   ;; [...]
   ;; If the server has a preferred choice of representation, it
   ;; SHOULD include the specific URI for that representation in
   ;; the Location field; user agents MAY use the Location field
   ;; value for automatic redirection.
   ;; -------------------------------
   ;; We do not support agent-driven negotiation, so we just
   ;; redirect to the preferred URI if one is provided.
   nil)
  ((moved-permanently found temporary-redirect) ; 301 302 307
   ;; If the 301|302 status code is received in response to a
   ;; request other than GET or HEAD, the user agent MUST NOT
   ;; automatically redirect the request unless it can be
   ;; confirmed by the user, since this might change the
   ;; conditions under which the request was issued.
   (unless (member url-http-method '("HEAD" "GET"))
     (setq redirect-uri nil)))
  (see-other ; 303
   ;; The response to the request can be found under a different
   ;; URI and SHOULD be retrieved using a GET method on that
   ;; resource.
   (setq url-http-method "GET"
 url-http-data nil))
  (not-modified ; 304
   ;; The 304 response MUST NOT contain a message-body.
   (url-http-debug "Extracting document from cache... (%s)"
   (url-cache-create-filename (url-view-url t)))
   (url-cache-extract (url-cache-create-filename (url-view-url t)))
   (setq redirect-uri nil
 success t))
  (use-proxy ; 305
   ;; The requested resource MUST be accessed through the
   ;; proxy given by the Location field.  The Location field
   ;; gives the URI of the proxy.  The recipient is expected
   ;; to repeat this single request via the proxy.  305
   ;; responses MUST only be generated by origin servers.
   (error "Redirection thru a proxy server not supported: %s"
  redirect-uri))
  (otherwise
   ;; Treat everything like '300'
   nil))
(when redirect-uri
  ;; Clean off any whitespace and/or <...> cruft.
  (if (string-match "\\([^ \t]+\\)[ \t]" redirect-uri)
      (setq redirect-uri (match-string 1 redirect-uri)))
  (if (string-match "^<\\(.*\\)>$" redirect-uri)
      (setq redirect-uri (match-string 1 redirect-uri)))

  ;; Some stupid sites (like sourceforge) send a
  ;; non-fully-qualified URL (ie: /), which royally confuses
  ;; the URL library.
  (if (not (string-match url-nonrelative-link redirect-uri))
               ;; Be careful to use the real target URL, otherwise we may
               ;; compute the redirection relative to the URL of the proxy.
      (setq redirect-uri
    (url-expand-file-name redirect-uri url-http-target-url)))
           (let ((url-request-method url-http-method)
(url-request-data url-http-data)
(url-request-extra-headers url-http-extra-headers))
    ;; Check existing number of redirects
    (if (or (< url-max-redirections 0)
    (and (> url-max-redirections 0)
 (let ((events (car url-callback-arguments))
(old-redirects 0))
   (while events
     (if (eq (car events) :redirect)
 (setq old-redirects (1+ old-redirects)))
     (and (setq events (cdr events))
  (setq events (cdr events))))
   (< old-redirects url-max-redirections))))
;; url-max-redirections hasn't been reached, so go
;; ahead and redirect.
(progn
  ;; Remember that the request was redirected.
  (setf (car url-callback-arguments)
(nconc (list :redirect redirect-uri)
(car url-callback-arguments)))
  ;; Put in the current buffer a forwarding pointer to the new
  ;; destination buffer.
  ;; FIXME: This is a hack to fix url-retrieve-synchronously
  ;; without changing the API.  Instead url-retrieve should
  ;; either simply not return the "destination" buffer, or it
  ;; should take an optional `dest-buf' argument.
  (set (make-local-variable 'url-redirect-buffer)
(url-retrieve-internal
redirect-uri url-callback-function
url-callback-arguments
(url-silent url-current-object)))
  (url-mark-buffer-as-dead buffer))
      ;; We hit url-max-redirections, so issue an error and
      ;; stop redirecting.
      (url-http-debug "Maximum redirections reached")
      (setf (car url-callback-arguments)
    (nconc (list :error (list 'error 'http-redirect-limit
      redirect-uri))
   (car url-callback-arguments)))
      (setq success t))))))
      (4 ; Client error
       ;; 400 Bad Request
       ;; 401 Unauthorized
       ;; 402 Payment required
       ;; 403 Forbidden
       ;; 404 Not found
       ;; 405 Method not allowed
       ;; 406 Not acceptable
       ;; 407 Proxy authentication required
       ;; 408 Request time-out
       ;; 409 Conflict
       ;; 410 Gone
       ;; 411 Length required
       ;; 412 Precondition failed
       ;; 413 Request entity too large
       ;; 414 Request-URI too large
       ;; 415 Unsupported media type
       ;; 416 Requested range not satisfiable
       ;; 417 Expectation failed
       ;; 422 Unprocessable Entity (Added by DAV)
       ;; 423 Locked
       ;; 424 Failed Dependency
       (case status-symbol
(unauthorized ; 401
 ;; The request requires user authentication.  The response
 ;; MUST include a WWW-Authenticate header field containing a
 ;; challenge applicable to the requested resource.  The
 ;; client MAY repeat the request with a suitable
 ;; Authorization header field.

          ;; bug patch because url-http-handle-authentication
          ;; might return a new buffer

          (let ((retval (url-http-handle-authentication nil)))
            (url-http-debug "Url Http Parse Headers: handling authentication return buffer TO %s" retval)
            (when retval
              ;; Put in the current buffer a forwarding pointer to the new
              ;; destination buffer.
              ;; FIXME: This is a hack to fix url-retrieve-synchronously
              ;; without changing the API.  Instead url-retrieve should
              ;; either simply not return the "destination" buffer, or it
              ;; should take an optional `dest-buf' argument.
              (set (make-local-variable 'url-redirect-buffer)
                   retval)
              (url-http-debug "Url Http Parse Headers: handling authentication return buffer TO %s -> %s 2:"
                              retval url-redirect-buffer)
              (url-mark-buffer-as-dead buffer))))
         
(payment-required              ; 402
 ;; This code is reserved for future use
 (url-mark-buffer-as-dead buffer)
 (error "Somebody wants you to give them money"))
(forbidden ; 403
 ;; The server understood the request, but is refusing to
 ;; fulfill it.  Authorization will not help and the request
 ;; SHOULD NOT be repeated.
 (setq success t))
(not-found ; 404
 ;; Not found
 (setq success t))
(method-not-allowed ; 405
 ;; The method specified in the Request-Line is not allowed
 ;; for the resource identified by the Request-URI.  The
 ;; response MUST include an Allow header containing a list of
 ;; valid methods for the requested resource.
 (setq success t))
(not-acceptable ; 406
 ;; The resource identified by the request is only capable of
 ;; generating response entities which have content
 ;; characteristics nota cceptable according to the accept
 ;; headers sent in the request.
 (setq success t))
(proxy-authentication-required ; 407
 ;; This code is similar to 401 (Unauthorized), but indicates
 ;; that the client must first authenticate itself with the
 ;; proxy.  The proxy MUST return a Proxy-Authenticate header
 ;; field containing a challenge applicable to the proxy for
 ;; the requested resource.

          ;; bug patch because url-http-handle-authentication
          ;; might return a new buffer
          
          (let ((retval (url-http-handle-authentication t)))
          
            (when retval
            ;; Put in the current buffer a forwarding pointer to the new
  ;; destination buffer.
  ;; FIXME: This is a hack to fix url-retrieve-synchronously
  ;; without changing the API.  Instead url-retrieve should
  ;; either simply not return the "destination" buffer, or it
  ;; should take an optional `dest-buf' argument.
  (set (make-local-variable 'url-redirect-buffer)
                        retval)
  (url-mark-buffer-as-dead buffer))))
          
(request-timeout ; 408
 ;; The client did not produce a request within the time that
 ;; the server was prepared to wait.  The client MAY repeat
 ;; the request without modifications at any later time.
 (setq success t))
(conflict ; 409
 ;; The request could not be completed due to a conflict with
 ;; the current state of the resource.  This code is only
 ;; allowed in situations where it is expected that the user
 ;; mioght be able to resolve the conflict and resubmit the
 ;; request.  The response body SHOULD include enough
 ;; information for the user to recognize the source of the
 ;; conflict.
 (setq success t))
(gone                          ; 410
 ;; The requested resource is no longer available at the
 ;; server and no forwarding address is known.
 (setq success t))
(length-required ; 411
 ;; The server refuses to accept the request without a defined
 ;; Content-Length.  The client MAY repeat the request if it
 ;; adds a valid Content-Length header field containing the
 ;; length of the message-body in the request message.
 ;;
 ;; NOTE - this will never happen because
 ;; `url-http-create-request' automatically calculates the
 ;; content-length.
 (setq success t))
(precondition-failed ; 412
 ;; The precondition given in one or more of the
 ;; request-header fields evaluated to false when it was
 ;; tested on the server.
 (setq success t))
((request-entity-too-large request-uri-too-large) ; 413 414
 ;; The server is refusing to process a request because the
 ;; request entity|URI is larger than the server is willing or
 ;; able to process.
 (setq success t))
(unsupported-media-type ; 415
 ;; The server is refusing to service the request because the
 ;; entity of the request is in a format not supported by the
 ;; requested resource for the requested method.
 (setq success t))
(requested-range-not-satisfiable ; 416
 ;; A server SHOULD return a response with this status code if
 ;; a request included a Range request-header field, and none
 ;; of the range-specifier values in this field overlap the
 ;; current extent of the selected resource, and the request
 ;; did not include an If-Range request-header field.
 (setq success t))
(expectation-failed ; 417
 ;; The expectation given in an Expect request-header field
 ;; could not be met by this server, or, if the server is a
 ;; proxy, the server has unambiguous evidence that the
 ;; request could not be met by the next-hop server.
 (setq success t))
(otherwise
 ;; The request could not be understood by the server due to
 ;; malformed syntax.  The client SHOULD NOT repeat the
 ;; request without modifications.
 (setq success t)))
       ;; Tell the callback that an error occurred, and what the
       ;; status code was.
       (when success
(setf (car url-callback-arguments)
      (nconc (list :error (list 'error 'http url-http-response-status))
     (car url-callback-arguments)))))
      (5
       ;; 500 Internal server error
       ;; 501 Not implemented
       ;; 502 Bad gateway
       ;; 503 Service unavailable
       ;; 504 Gateway time-out
       ;; 505 HTTP version not supported
       ;; 507 Insufficient storage
       (setq success t)
       (case url-http-response-status
(not-implemented ; 501
 ;; The server does not support the functionality required to
 ;; fulfill the request.
 nil)
(bad-gateway ; 502
 ;; The server, while acting as a gateway or proxy, received
 ;; an invalid response from the upstream server it accessed
 ;; in attempting to fulfill the request.
 nil)
(service-unavailable ; 503
 ;; The server is currently unable to handle the request due
 ;; to a temporary overloading or maintenance of the server.
 ;; The implication is that this is a temporary condition
 ;; which will be alleviated after some delay.  If known, the
 ;; length of the delay MAY be indicated in a Retry-After
 ;; header.  If no Retry-After is given, the client SHOULD
 ;; handle the response as it would for a 500 response.
 nil)
(gateway-timeout ; 504
 ;; The server, while acting as a gateway or proxy, did not
 ;; receive a timely response from the upstream server
 ;; specified by the URI (e.g. HTTP, FTP, LDAP) or some other
 ;; auxiliary server (e.g. DNS) it needed to access in
 ;; attempting to complete the request.
 nil)
(http-version-not-supported ; 505
 ;; The server does not support, or refuses to support, the
 ;; HTTP protocol version that was used in the request
 ;; message.
 nil)
(insufficient-storage ; 507 (DAV)
 ;; The method could not be performed on the resource
 ;; because the server is unable to store the representation
 ;; needed to successfully complete the request.  This
 ;; condition is considered to be temporary.  If the request
 ;; which received this status code was the result of a user
 ;; action, the request MUST NOT be repeated until it is
 ;; requested by a separate user action.
 nil))
       ;; Tell the callback that an error occurred, and what the
       ;; status code was.
       (when success
(setf (car url-callback-arguments)
      (nconc (list :error (list 'error 'http url-http-response-status))
     (car url-callback-arguments)))))
      (otherwise
       (error "Unknown class of HTTP response code: %d (%d)"
     class url-http-response-status)))
    (if (not success)
(url-mark-buffer-as-dead buffer))
    (url-http-debug "Finished parsing HTTP headers: %S" success)
    (widen)
    success))