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MOSS 2007 requires multiples logins when opening Office 2007 documents, how can I get rid of them?

Last Modified: 2008-11-11
We have MOSS 2007 on WSS 3.0 installed on the network. Both internal and external access to the sharepoint site use ISA 2004 (which is in its own workgroup and not part of the domain). The format of the address used by both external and internal users is http://site.mydomain.ac.uk 
Any attempt to open Office 2007 documents prompts for a username and password request.

Have tried numerous options in Internet Explorer to no avail, any help appreciated.
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