When opening up an Excel document (XLSX) using WebDAV from our document library, the following error appears when clicking on Prepare->Properties and entering an authorized library users' credentials while requesting access to

http://<site>/sites/Library/_vti_bin/lists.asmx.
Permissions for the user is denied and we receive the following message...

The query cannot be run for the following DataObject: list_guid
Document Information Panel cannot run the specified query.
The Web service request could not be authenticated.

If we put in elevated credentials (farm admin account) it works fine and the DIP displays the content type definitions. Why can't authorized library users access the lists.asmx web service? How do we grant permissions to Sharepoint SDK web services?

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