I have an IIS server that requires NTLM authentication to access files
on it. When a I connect, I provide my username/password/domain and I
can browse around to my heart's content. However, if I open up an
Excel file from within the Web Folders interface, Excel requires
re-authentication. What's worse, I've saved my password in Excel
(using the "save this password in the password list" checkbox) and it
presents me with the username/password every time it opens the
document so all I do is hit "ok" and proceed.

It seems to me that Web Folders should hand off any authentication
tokens it has to Office or at least if Office has a saved password, it
should try it first before prompting the user.

I've seen some threads about SR-1A and password dialogs but it is
unclear if this is the same problem. I am running Office 2000 SP3 so
I'm assuming SR-1A is part of SP3?