Windows will not remember Outlook Password

Exchange 2k3 e-mail account. Local PC XP Pro SP2 running Outlook 2k7.

Despite clicking “save password” when connecting to exchange server via Outlook, the password is not saved and is asked each time launch Outlook (username IS saved). Sounds silly, but very annoying. What I’ve determined:

In User Accounts|Advanced|Manage Passwords, the server name is saved, but not the password. Attemping to add it here also does not save.

The Local Policy “Network access: Do not allow storage of credentials or .NET Passports for network authentication” is DISABLED.

Any other ideas? Are there other policies? I’m stumped. Thanks in advance.