The problem of Internet Explorer 8:

[@@]

I'm not sure but in the site       http://support.microsoft.com/kb/306895

This problem can occur if RSABase.dll is incorrectly registered

[Allan]

http://support.microsoft.com/kb/306895

[kristain]

Windows NT Challenge/Response must be enabled in the Web site properties in IIS. Anonymous authentication is attempted first, followed by Windows Integrated authentication, Digest authentication and then Basic (clear text) authentication. Internet Explorer does not pass your user name and password automatically when you are using Basic (clear text) authentication or Digest authentication. You are always prompted for credentials when you are using these authentication methods.

[BC_Programmer]

OF course that breaks down when you realize that some the sites they are having problems with are not running IIS, since it's a general problem for all sites.

[soybean]

Note: I use in parallel with the Internet Explorer. Firefox 3.6.3 and Opera 10.51 and there is no such problem with them

Then, why not just use Firefox 3.6.3 and/or Opera 10.51?   

[Sidewinder]

Normally I use Firefox except for Windows Updates. When I updated to IE8, many of my VBScripts broke.

Creating an instance of InternetExplorer.Application became a hit or miss situation, mostly miss. I could have fixed each script by using another object (Microsoft.XMLHTTP) but in keeping with KISS theory, reverting back to IE7 was so much easier.

[soybean]

Normally I use Firefox except for Windows Updates. When I updated to IE8, many of my VBScripts broke.

I have not noticed that with IE8 but, regarding password handling, I've found that Firefox and Opera (which I have much less experience with than Firefox) both do a better job of managing passwords.