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Authentication prompt while opening Excel/word files from IE8

C

Chandu N

Flightless Bird
While opening Excel or Word documents from intranet websites in IE8, we are
seeing authentication prompt and after providing credentials the file is
opening fine. Surprisingly if I cancel the authentication prompt, the file is
still opening fine!! Is this problem related to IE or Office? How to fix the
issue?

I tried following but nothing worked:
-Moved website from intranet zone and added to trusted sites
-Reset IE8 settings
-From Firefox the files are opening fine. FF is downloading file to local
disk and opening it.
-Changed default browser to Firefox and tried to open Excel, file -> open
and gave Excel file HTTP URL

Environment:
IE8 - 32-bit
Windows 7 x64
 
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