I'm using WSS 3.0 SP1 with IIS 6.0 on integrated authentication. However when access Sharepoint this is what happens. You are prompted for a password when you first access the site (via IE8), and then everytime you attempt to open a document you are forced to reauthenticate. This is causing a lot of people to want to kill WSS altogether because they are sick of entering passwords. Any thoughts on how we can get rid of the prompt everytime a document is accessed?
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Thanks to all for the suggestions on how to fix this. I share my solution to solve the login prompt once and for all.
Hope it helps you.

NEO
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This does seem to be a standard thing, have never seen a good solution to it.
Yes the integrated Windows auth (AKA NTLM and/or Kerberos) should work, but it doesn't seem to help when opening documents.

LapTop006
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We had this set up at another company, and I don't recall being prompted on every document. I am reasonably certain that this should be possible. For now we have worked around the issue by making it a trusted site and then instructing people to allow it save their passwords. But I really hate that solution for quite a few reasons. – Aaron Bush Dec 31 '09 at 16:56