SRM Live Auction issue

Hello Experts,
Need your inputs on the following issue:
Whenever the Strategic Purchaser clicks on the 'Live Auction' button in SRM portal, in the new window the system again asks for the Username and Password. After entering the Purchaser login credentials again the system show the Live Auction java Applet.
SRM version 7.0 SP02 (Sandbox System for end users)
SSO has been configured between ABAP and JAVA.
Portal URL has been added in the Trusted sites in the IE 8
Compatibility view is active for all websitesi in IE8
Regards,
Lalit

Issue resolved by keeping the IE Privacy settings to low level.

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