Question : Outlook requests password authen. repeatedly after Security Updates on Windows SBS 2008 Server.

My clients were running Outlook 2007 without problems untilI did some security updates on our Windows SBS 2008 server on 12/10/2009. I installed the following updates: KB973917, KB974318, KB970430, KB971737, KB976325, KB973688, KB954430, KB973688

Now my Outlook2007 clients are  requesting password authentication (box says "connect to myserver.domain.local"). If I enter correct credentials, it instantly asks me again, no matter what I type in. Also, behind the window it somehow manages to ACTUALLY authenticate and download email from exchange. Despite this, it insists on asking for password repeatedly. It is really annoying and distracting to my client users. Please help!

Answer : Outlook requests password authen. repeatedly after Security Updates on Windows SBS 2008 Server.

This issue has come up several times with SBS 2008 and Office 2007. Apparently installing Exchange roolup 9 will resolve the issue as per the following link:
http://www.petri.co.il/forums/showthread.php?t=42566&page=2
For more details on the related problem see the previous page of the thread.