Office 2007 and Local Editing

Hello all,
We have recently upgraded to the office 2007 and IE 7.Now we are facing problems on few fronts.
1)When a user tries to save as document from KM it gives a authentication pop up message.If user ignores it and cancels it he is able to download the document.
If anyone is facing the same problem please help.
Regards
Ajey

Hi,
please look at :
notes 419086 and 549610.
http://support.microsoft.com/kb/324328/
Brad

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