SharePoint keep asking for password

I have few users who add sharepoint site to Outlook client. When they tried to access sharepoint site thru outlook, it keeping prompt for credential, even though
they key in correct username and password.
User's PC running on WindowsXP and Outlook 2007. PC joined to the domain
I had been read many link on internet which telling to add to trusted site but none is working.
e.g. http://www.sharepointdiary.com/2012/04/sharepoint-keeps-asking-for-password.html
I have an user who follow steps mentioned on above link but still outlook keep prompt for password.
User have full access on SharePoint site but when they click on Send and Receive, they receive outlook sync error as attachment. I believe this error due to the
outlook keep prompt even though they already the correct credential.

Noddy,
I had updated my post previously
1. are browsing to the SharePoint list and then from the ribbon selecting the option "Connect to Outlook" ... right ? YES
2. does this list has unique permission ?yes, but when click "show me uniquely secured content", it show the list that may contain items with unique permission but http://project.contoso.com/sites/ASS/Lists/Ass
Leave Calendar not including.
3. what are the permission user has on the site collection ? Full control,Design,contribute,read
4. have root site ? if NO, create one. Does you mean web application? web application is http://project.contoso.com/sites

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