I am trying to open and populate an Excel template through ActiveX
controls on our intranet site.

Now although it works, I get this annoying prompt which asks for 'Enter
Network Password'.  If I select cancel, everything works as it should.
I have not set up any special security on the hosted xlt files.  All
permissions seem to be good on the web server.

I've seen many newsgroup items that say SR1-a will fix this for Office
2000.  This doesn't seem to apply to my problem.  I've applied the
patch, used office 2002 and 2003 and all give the same prompt for a
network password.

I've manually started Excel on my client and in the open a file dialog
I enter a URL for the xlt, the same prompt appears.

Any ideas then on how to get rid of this prompt?

Cheers,
Andy.