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Outlook 2007 asks for password when connected to exchange 2008 on localnet


When i connect to our Exchange 2007 server on our local company network, i gets the username and password dialog sporadic but within a few minuttes. If i enter the username and password it just pops up again, but does not connect me to the exchange server. If i close it and then click the "Please enter the password" in the lower right corner of outlook, then i get the connection to exchange again without entering any password.

I use a SBS 2008 server, Outlook 2007 and Windows 7 Proffesional. The issue is on all computers connected on the local network. I have tried to connect my computer to the server switch to see if was some sort of network failure, but it does not seem like it.

If i connect to the exchange server with Outlook everywhere, i do not loose the connection. The configuration of Outlook 2007 is using NTLM.

I hope someone can help me solve this issue.
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1 Solution
First of all. Check the Service pack on Exchange. If its not SP2. Install SP2 and that will solve your issue. I have come across many situation on SBS 2008 servers.
You can update the service pack from SBS management console and update.
Check whether the autodiscover is working fine. If yes check the below possibilities.
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)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.
This is a known issue with SBS2008. Please install rollup 9 for Exchange 2007.

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