You are prompted to type your user credentials when you use Internet Explorer to access files on a Web Distributed Authoring and Versioning (WebDav) site on a Windows Vista-based computer
When you use Windows Internet Explorer to access files on a Web Distributed Authoring and Versioning (WebDav) site on a Windows Vista-based computer, you receive a dialog box that prompts you to type your user credentials.
Note: A SharePoint Portal Server site is an example of a WebDav site.
This problem occurs if you disable the Automatically detect settings option in Internet Explorer. For information about how to enable this option, see the “More Information” section.
Note: This problem does not occur in Windows XP.
For more information on this issue, including potential causes, workarounds, and resolutions, see: Microsoft KB Article KB941853.

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