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You use a smart card to connect a Windows Vista-based portable computer to a LAN, and you start Microsoft Office Outlook 2007. Then, you disconnect from the LAN. When you reconnect to the LAN with the smart card, and then start Outlook 2007, you are prompted to enter your LAN credentials. This behavior occurs because Outlook 2007 does not recognize that the smart card contains a valid set of credentials.
How to obtain the hotfix
This issue is fixed in the Outlook 2007 post-Service Pack 1 Hotfix Package that is dated January 28, 2008. For more information, click the following article number to view the article in the Microsoft Knowledge Base:
941275 Description of Outlook 2007 post-Service Pack 1 hotfix package: January 28, 2008
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.