Brief history for this issue is:

Two domains within the forest, lets call DA & DB. DA Domain has the
sharepoint server installed and users from both domains access
sharepoint. When DB users access the sharepoint, when trying to view
or edit documents, it is asking for password again, each time you try
to access a document. If you cancell the prompt the document opens
up fine. If you try to edit a document, it asks for a logon and
password and if you choose not to supply them, then nothing openes up.

I have refered to the following:

support.microsoft.com/default.aspx

This would not solve my issue since I cant enable integrated windows
login.