Outlook Anywhere, NTLM, TMG, password prompt but cancels works?

I've managed to get NTLM authentication working with TMG and Exchange 2010 (Make sure you switch your Application Pool for the RPC app over to a local system!). We also run Lync.
So here is the thing. I log into a domain laptop with cached credentials and then connect to a Verizon access point. Now Lync connects automatically no password needed. Then I open Outlook which connects no problem no password needed!
Awesome that is what I wanted. Then after about 30 seconds......password prompt. If I enter the password everything is good. If I click cancel the little need password icon is displayed down at the bottom of outlook. I click on that and outlook reconnects
without me ever having to enter a password.
I have been watching the log on the TMG server and I don't see anything odd going on other than and occasional Status 64 The specified network name is no longer available error which I understand from other posts is by design.
It's not a show stopper by any means but I just don't understand what is going on here. Anyone have any ideas? 

Hello,
Firstly, please test Outlook Anywhere in an internal environment:
On a internal outlook client, check on “on fast networks, connect using http first, then connect using TCP/IP”.
If the issue does not work, the issue is related to the TMG, you may need to inquiry on the TMG forum for more accurate suggestions.
Thanks,
Simon Wu
Exchange Forum Support
Please remember to mark the replies as answers if they help and unmark them if they provide no help. If you have feedback for TechNet Subscriber Support, contact
[email protected]

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