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Exchange 2007 keeps needing authentication

Last Modified: 2013-11-29

I have configured an Sbs 2007 server for a client however outlook 2007 keep requesting a password to connect to the exchange.What is strange is that outlook pulls in new mail and distributes them fine but yet requests a password.What i do find strange is that requested credentials are connecting to server.domainname.local then in the username field it says server\username.Desktop is defintely on domain.All desktops are doing it.
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