Auto Login fails with Published Applications on a Windows 2000 Terminal Server-WC
 Remote Desktops and Seamless Applications FAQs 
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I have published an application and configured WebConnect to use the user credentials in order to authenticate the user while logging in to the Terminal Server. However, for some reason, the login process on the terminal server is not done automatically: A Log On dialog pops up and asks the user to provide username and password. How do I prevent this?

In case that WebConnect configuration is accurate, please verify the following Terminal Server configuration  (Windows 2000):

1) Click Start -> Programs -> Administrative Tools -> Terminal Services Configuration.

2) Right click on RDP_TCP.

3) Open Log On Settings.

4) Verify that the "Always prompt for password" option is unchecked.