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Outlook 2007 asking for user credentials

Windows 2008 R2 / Exchange 2010 SP1
Workstations consist of Windows XP and thin clients using Office 2007 SP2

At this point, when Outlook is opened, the user is presented with a username and password prompt. They type in their credentials and Outlook is happy.
I did a few tests and I find out that if I hit ESC on that screen, Outlook complains, says that there are no default folders and shuts down. Double click on the Outlook icon and Outlook opens up without any credentials and the user is able to use it.

Now, for some background. We had a bad server crash, I brought in a temp server, moved everything over to that server, reformatted the new server and reinstalled from scratch. That is all working fine except for this issue with the Outlook login prompt

When I check the Outlook Exchange settings, they are as follows;
Security Tab
Encrypt data between Microsoft Office Outlook and Microsoft Exchange – is checked
Connection Tab
Outlook Anywhere – Connect to Microsoft Exchange using HTTP is checked
Exchange Proxy Settings
Only connect to proxy servers…
Proxy authentication settings – basic

Something in the setup is not quite right
When the original server was first set up, this wasn’t a problem but then again, we were using Exchange 2003.
The certificate was generated with anywhere.domain.ca along with the other names
Any suggestions?
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1 Solution
Open outlook with /rpcdiag and if it shows 'HTTP' as the connection type then the  credentials prompt is correct because you are using Basic auth for RPC/HTTP
johnbowdenAuthor Commented:
I was able to resolve this problem on my own. For some reason, the public folder wasn't showing up and once I made a change or two in the Exchange manager, it started working
johnbowdenAuthor Commented:
resolved myself
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