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I have a form library with a people picker to determine the document approver. There is a workflow that runs when the item is submitted that grants OOTB Approval permission to whomever is in that people picker, and then assigns them an approval task.

The approver gets the task, but when he goes to approve the item, SharePoint keeps asking for his credentials and won't accept his username/password.

I'm curious why it's not letting the assigned approver approve the task, when he (allegedly) has the proper permisisons.

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You might want to check that the approver does in fact have permissions, as solving your probably would very much be based on the result. – Zork Jun 8 '12 at 20:50
up vote 2 down vote accepted

The approver might have the proper permissions for the file, but check the permissions for the task list associated with the approval workflow -- those must be set up properly as well.

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