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I'm curious that nothing happens whether you click on Accept or Dismiss. When I click on the Accept button, the stored login credentials are entered and the account is opened. This is very handy because I don't need to enter the username or password again, or at all, if it has been stored in the LMI client.
I'm also trying to figure out how to turn this on and off. I have one account (Admin) on the host computer for which this alert works, but another (Standard) for which it does not work. For some reason I have had to make configuration changes (in the host computer's LMI settings) for the Standard user account to even allow it to log in. I have given full rights to the user, but this Connection Alert still does not show up... Have you learnt how to turn it on and off?