I have been running Office 2007 on Windows Vista Ultimate and every time I tried to open a document stored in WSS 3.0 I would be prompted to provide my credentials. I had asked about that issue and I was told that this is a security feature.
Well… it seems it was a bug. The Microsoft SharePoint Products and Technologies Team posted a workaround to their blog. The following steps solve the problem
- Go to IE7 -> Internet Options -> Connections -> LAN Settings
- Enable ‘Automatically detect settings’ - this option will prevent the prompt if it effectively enables a proxy server and enables bypassing the proxy for local addresses.
- Setup a ‘fake proxy’ by doing the following:
- Click the Proxy Server checkbox. Set the address to “fake proxy” without the quotes and the port to 80.
- Click the “Bypass proxy server for local addresses” checkbox.
- Click Advanced and put an * in the Exceptions list to cause all addresses (including external ones) to be bypassed.
Here is the link to the post






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