Exchange 2007/Outlook Authentication Failure

Server 1: W2K3 STD - A.D., Terminal Server
Server 2: W2K3 x64 STD - Exchange 2007 (fully up to date)

I have a major issue where any new Outlook 2007 client I set up on any pc on the network will not authenticate. Initially it will discover the users settings automatically and start the process, but it then grinds to a halt and asks for a username and password (even though the user is logged on to the domain). The correct credentials do not work.

When the logon box appears it has "domain\user" filled correctly. If, however, I remove the domain and try just the user name and password, it reappears with "exchange server\user", which I find odd.

Anyway, I'd be very happy if anyone could help me shed some light on this,

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See this for possible causes.
Check the default settings for virtual directories in Exchange Server 2007

Specifically for /Autodiscover - Authentication "Basic & Integrated" should be selected.
gabioszAuthor Commented:
Annoyingly it was a basic DNS issue!

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