Customer set up webnetwork to SSO into terminal server and it keeps prompting for the users password. Customer then tried using mstsc.exe RDP 6 client and that also asked for password.

Problem is with Windows 2000 server terminal server. By default it is set to 
prompt always for a password. 

The following information comes from: 
http://www.microsoft.com/technet/prodtechnol/win2kts/maintain/optimize/secw2kts.mspx 

Below are the various configuration settings and recommendations. All of the 
following settings can be accessed through the Terminal Services Configuration 
tool (Start -> Settings -> Control Panel -> Administrative Tools -> Terminal 
Services Configuration -> Connections -> RDP-Tcp). 

• General sheet 

• Encryption level – Choose the encryption level based on the recommendations 
within the previous Encryption Levels section. [Default: Medium] 

• Use standard Windows authentication – If another authentication package is 
installed on the target Windows 2000 Server, this setting will force Windows 
2000 to use its own authentication mechanism. If there is no other 
authentication package installed, leave this box unchecked. [Default: Unchecked] 


• Logon Settings sheet 

• Use client-provided logon information – Enabling this setting requires the 
client to enter the necessary user, domain, and password to gain access to 
Terminal Services. The setting prevents a malicious user from automatically 
gaining access using a saved account and password on the server. [Default: 
Selected] 

• Always use the following logon information – This setting allows all Terminal 
Services clients to use the logon information provided within the associated 
frame. Because auditing features would always show the same user account as 
logging on, a malicious user can slip in unnoticed. Avoid using this setting. 
[Default: Unselected] 

• Always prompt for password – By selecting this option, Terminal Services’ 
clients cannot use a password saved with the client. Instead, at the beginning 
of every session, the client is always prompted for a password. Using this 
setting can prevent a malicious user from taking over a client and using the 
embedded user account and password to login. [Default: Selected] 


You will want to uncheck the Always prompt for password.