Using IE 8 on Windoww 7 - hangs on "Looking for Credential Tiles" when attempting to Use OWA connection

Using IE8 on Windows 7 , using a HP  HP6730b laptop. I connect to my Exchange email using OWA., it is Exchange 2003.
When I attempt to sign on, IE gets stuck with a dialog box saying "Looking for Credential Tiles" and goes no further.
Researching this error, turning on "Enable Forms Based Authentication" under HTTP protocols on the Exchange server allows a success full logon to the mail inbox as expected.
The only problem now being, all  mobile phones that SYNC up to their mailbox's fail with SUPPORT CODE : 0x85010014  -
when I turn off "Enable Forms Based Authentication"  the mobile phones start to SYNC back up again.

Does anyone know how to allow conenction through OWA and allow thr SYNC functionality to work as before ?

Thanks.
ccfcfcAsked:
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indigo369Commented:
Run IE in comptablity mode and see if you can reproduce same issue.
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ccfcfcAuthor Commented:
I have tried that but was sure it would not fix the issue as other people in my company use IE8 and Windows 7 and connect to the Exchange mailbox via OWA without any problems.
The difference is the Laptop 6730b which has finger recognition.I have disabled this function but still the issue remains.

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ccfcfcAuthor Commented:
I stopped usign SSO  functionality that comes with the HP 6730b laptop and all staretd working. I have removed the Credential manager and Protection Tools that are pr-installed on the the machine and all starts workign as expected.

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