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Im using 3.1M7, after correctly entering webdav connection details I have webdav uploaded a PDE update site, several times. I restart the IDE and the password is gone. There seems to be a problem in cacheing WEBDAV passwords. This is different to #96075 which is about ongoing maintenance.
The WebDAV support is not being actively developed or maintained.
We are in the process of removing the Team FTP/WebDAV feature since the DSDP Target management component (http://www.eclipse.org/dsdp/tm/) provides complimentary functionality and will be shipping as part of Europa. Although the feature will not be part of Europa, we have provided a link to a 3.3 compatible version of the feature at http://wiki.eclipse.org/index.php/Team_Development.
As of now 'LATER' and 'REMIND' resolutions are no longer supported. Please reopen this bug if it is still valid for you.