You are prompted to enter your credentials when you access an FQDN site by using a Windows Vista-based client computer that has no proxy configured
Consider the following scenario.
- On a Windows Vista-based computer, you do not configure a proxy in Windows Internet Explorer.
- You use Web Distributed Authoring and Versioning (WebDav) to access a fully qualified domain names (FQDN) site.
In this scenario, you are prompted to enter your credentials, even though the user account that you are using has sufficient permission to access this site.
For example, when you open a Microsoft Office file from a Microsoft Office SharePoint site by using 2007 Microsoft Office on a Windows Vista-based client computer that has no proxy configured, you are prompted for authentication.
Note: This problem does not occur on a Windows XP-based computer.
For more information on this issue, including potential causes, workarounds, and resolutions, see: Microsoft KB Article KB943280.

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