Internet Explorer 8 causing login prompt connecting to Sharepoint 2007 (from separate workstation)

We are using integrated windows authentication (I think NTLM). All other clients seem to be working fine, IE6 or IE7. The intranet site is in the trusted sites zone in IE.

First user to test said IE8 originally worked, but a patch may have broken it. I tested with an upgrade of my working IE7 install to IE8 and see the same behavior.

When going to the site we get the login prompt, we can authenticate via domain\username & password. We also get prompted again when accessing something from the document library.

Has anyone else seen this behavior?

Will Sharepoint 2007 SP2 or switching to Kerberos fix it?

---

The below may be related, but this references running IE8 on the server, in addition, we can still authenticate, just not automatically.

http://serverfault.com/questions/32345/ie-8-authentication-denied-on-local-sharepoint-site

From serverfault atom255

• Check to make sure your Trusted Sites zone allows 'Automatic login with current username and password'.

  Open IE, Tools -> Internet Options -> Security -> Trusted Sites.

  1. Click 'Sites' and make sure your SharePoint site url is in there.

  2. Click 'Custom Level', scroll to the bottom and ensure 'Automatic Logon with current user name and password' is selected.

  atom255 : Spot on Thanks!
  From Moo

• I have the above settings but i still have trouble with prompting. does having the sharepoint site explicitly listed fix this right now we have trusted sites set as *.portal.com which should catch all the sharepoint servers.

  From $pageUsers[$post.author].name

• Hi, I got the same promp in a anonymous access site, I mean, users can acces information without autentication and they try to open files then they are promted with a user name and password window.

  Using IE7, Chrome or Firefox does not present that window Can anyone some idea?...

  From $pageUsers[$post.author].name