I have a SharePoint 2010 portal (Claims based + NTLM + SSL). If I open office document within domain it prompts for login window and even if I enter correct user name and password and it doesn't authenticate and continously pops up login prompt. If I cancel the Login screen then it opens the documents and i'm able to save the document but many time the office client freezes.
I used fiddler to see the request trace and I noticed 401 error response continously.
I have added the site to local intranet zone & Trusted sites in IE and set custom level to automatic log-on.
This is driving me nuts. :(