Outlook 2007 keeps asking for password

I have a new SBS 2008 server with exchange 2007, outlook 2007 keeps asking for the password but does not accept it, email keeps flowing but the popups are annoying also outlook says it needs a password in the lower right of outlook. I noticed that with SBS 2008 it automatically adds the outlook anywhere settings in outlook using the auto setup, I removed the profile and set it up manually but still get the login popups. This same problem has just started on another SBS client that has been running for about a year. Did Microsoft add something in a patch?
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Cofirm the passwords for the users are not changing or have not expired.  Try going on the server it self and changing the users password.  If that doens't work, try a simple reboot of the server....

Also, make sure you don't have any POP settig.  as te use could have SMTP setup for exchange and another mail account setup for there personal email in a pop configuration.
Is your autodiscover working fine internally?

Possibilities for outlook 2007 prompting for credentials:
1) Check the authentication on the Autodiscover virtual directory and it should be basic and integrated.
2)Check the authentication on the EWS and OAB and it should be only integrated.
3)When you run testemailautoconfiguration on the outlook check whether the OAB is giving the URL or it is pointing to the public folders.
4)Check for the kernel mode authentication and disable it if it is enabled.
5)You can check for addins on the outlook which requires username and password often. You never know.
6) Atlast try to disable IPv6 by following this artilce:
7)It might be autodiscover virtual directory corruption. You can delete and recreate the autodiscover virtual directory.

You may try these things and keep me posted.
And check whether you have latest updates for Exchange server. It should be Atleast update rollup 9. I would recommend for SP2 for Exchange.

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lbryanAuthor Commented:
Already tried these things.
lbryanAuthor Commented:
I will check SP2 for exchange 2007
SP2 for Exchange 2007 is a little complex to install on SBS 2008.

The prompt is caused by the lack of rollup 9. SBS doesn't deploy it automatically, so you need to go in to Updates and approve it for installation.

lbryanAuthor Commented:
SP2 for Exchange 2007 worked thanks. I used this on two separate sites.
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