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I have 10000 users with different OUs, groups. We have a Windows 2008 AD server and a Exchange 2010 mail server. Clients are using Windows 7 64-bit OS and Outlook 32 bit. Whenever users change their password, Outlook and Lyncs keep on prompting passwords from the user even after the users enter the correct credentials. This causes an account lockout issue. Due to this, we are facing large number of tickets. What we are doing right now is restart the machine and remove the saved password from the vault.

Does anyone have an alternate solution for this?

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You've got Basic or NTLM authentication enable for Outlook Anywhere (on your Exchange Client Access server(s)). This has the negative side effects that your clients store the password in the Windows Vault, and that your Exchange server(s) are susceptible to the recently released NTLM security bug (which makes your Exchange server trivial to hack).

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