We have a randomly occurring issue where Office applications (mostly Word and Excel) are showing a dialog requesting users authentication credentials for our SharePoint Farm. The strange thing is that this occurs even when the user has not opened any
files from SharePoint. e.g. a user opens a file from locally on their desktop, edits the file then randomly a dialog appears for authentication to SharePoint. That file has never been stored in SharePoint or they didn't try to save it into SharePoint.
The prompt will persist for up to 3-4 times but then finally disappear. It is very frustrating for users.
(SharePoint Version: 2007 with Enterprise features enabled + all CU's/SP's Office Version: Professional 2007 with all SP's and latest patches from MS Update)
Things I have tried:
1. Set "Log On With Current Username and Password" in Internet Explorer security settings. Result - still get randomly prompted.
2. Check the template that word documents opened from local disk are using in case the template is stored in SharePoint. Result - template is local to the machine.
Any suggestions how to troubleshoot/fix this?
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