Unable to open documents in Office (Word and Excel) - 3 authentication prompts followed by 'Could not open ...'

I am getting multiple authentication prompts when I try to open or create a new .docx or .xslx document from SharePoint 2010. 
I tried this on different machines and on different browsers (IE and Firefox) and see the same behavior. I am the site collection administrator. I see the same behavior on other sites also. Other users are also seeing the same behavior.
If I download the document, I can open it without any issues.
The Web Application IIS authentication settings is NTLM and Client Integration is enabled. 

Hi shankze,
According to your description, my understanding is that you could not open the documents because of the authentications.
Go to IIS, make sure that the Security TokenServiceApplication pool is started.
Please do as the followings, and compare the result:
Add your site to the Trusted Sites Internet Zone.
Go to Internet Options - Security - Highlight the Trusted Sites Check Mark - click on custom level - scroll to the bottom and in the user authentication section select "Automatic logon with current username and password."
Also, you can do via group policy in DC server.
More information, please refer to the link:
http://www.networkadminsecrets.com/2011/08/sharepoint-2010-authentication-prompts.html
I hope this helps.
Thanks,
Wendy
Wendy Li
TechNet Community Support

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