Camera Guy Camera Guy wrote:

I have had this same problem. I am running Outlook 2003 SP2. When I
install IE7 I get the same behavior only with my Hotmail account.

The behavior is this:
Install IE7
Try to access HTTP mail (Hotmail account) through Outlook.
Even though password is stored by Outlook, a dialog pops up asking
for the password. The Check Box to remember is unchecked.
Even if I retype the password and check the box again, Outlook
refuses to log into my Hotmail account and keeps popping up the
Password dialog. All of my POP mail accounts are unaffected.

There's a fix for this, apparently. See
http://support.microsoft.com/kb/904942
--
Brian Tillman