I think Carl and I share the same problem. In case mine is a little different let me explain my situation and hopefully someone can help us both.
I have a website protected via an .htaccess schema. I have a login page that manually autenticates users using the .htpasswd file. The problem is that after the verification succeeds and I allow the user into the site, the .htaccess popup still prompts the user for their username/passwd again.
Currently to get around this problem, i'm passing the login info using
http://myuser:mypswd@members.site.com
Obviously this is not very secure. Is there another way to manually pass (on server side as Carl said) .htaccess the username password pair so it doesn't give the popup?