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Currently, the 2007 Microsoft Office system supports only forms-based authentication (FBA) through persistent cookies, such as the authentication cookies that are written to disk. Office does not support the acquisition of session cookies from a process in Internet Explorer 7.
However, in Windows Server 2008 Service Pack 2 (SP2) and in Windows Vista Service Pack 2 (SP2), the 2007 Microsoft Office system supports authenticating against FBA sites. Specifically, when you receive a particular response from the Web site, the 2007 Microsoft Office system now creates a Trident window that you can use to sign in to the Web site. The 2007 Microsoft Office system obtains cookies from that session, and you can access the content in the Web site.
To resolve this issue, obtain Windows Server 2008 SP2 or Windows Vista SP2 Release Candidate (RC). To obtain these programs, visit the following Microsoft Web site: