Issue with OWA and Outlook 2007 on new 2010 Exchange

I'm having issue with Outlook 2007, it asks for credentials when stated.
This doesn’t affect Outlook 2003 and 2010 users.
On the OWA side, when going into anything under “Options” like shown in the picture. It pops a new page and prompts for credentials.  After credentials are supplied, I’m having “bad request” error. I also tried resetting IE. In this case it will not prompt me for credentials for the first time and load the page but clicking on anything within the page will pop the error: “The session has expired. Please sign in and try again”.
I’m running Exchange 2010, which was migrated from 2003 about 1 month ago.
I did reset EWS directory using EMS followed by iisreset/noforce and also tried to enable Anonymous Authentication on EWS without positive result. I have valid SAN certificate from Digicert which covers both internal and external FQDN. Auto-discover works fine. Tested using "Test E-mail AutoConfiguration" feature in Outlook.

Any advice will be greatly appreciated.
Thank you

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Dan ArseneauConnect With a Mentor Commented:
You shouldn't have any issues setting it to ignore for the entire site unless there is some other component on the Exchange server that set it.  Then a iisreset /noforce will be in order.

Edit: Please check the RpcWithCert site.  It should be set to Required but that's it.
Dan ArseneauCommented:
Sounds a like Autodiscover.  Outlook 2003 doesn't use it, Outlook 2010 is more forgiving.
pomah1Author Commented:
Test E-mail Autoconfiguration Log:
Attempting URL found throug SCP
Autodiscover to starting
GetLastError=12044; httpStatus=0
GetLastError=12015; httpStatus=401
GetLastError=0 httpStatus=401
GetLastError=0 httpStatus=200
Autodicover to succeeded (0x00000000)
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Dan ArseneauCommented:
Make sure IIS is set to ignore Client Certificates.
pomah1Author Commented:
Will this affect OWA in any way?
Dan ArseneauCommented:
No.  By default, the setting should be "Ignore".
pomah1Author Commented:
I have set to "accept"
Is this needs to be done for"default website" or any particular vDir?
pomah1Author Commented:
Thank you,

that took care of Outlook 2007 prompts for credentials. But issue with OWA where Options page wouldn't load still exists.

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