Password prompt on Exit of database

I have a password protected database that is set to Compact & Repair on
Close, and when we upgraded from Access 2003 to Access 2007 it started asking
for a password when we close. It will not take the password for the
database, but if you choose "Cancel" it closes. I don't think it is
compacting though. How can I make it stop asking for the password....or at
least make it accept the password that lets me in the database?

Thanks!!
Susan

If you database is properly split, daily compacting is unnecessary unless
you are dealing with lots of data in temporary tables. In fact, compact on
close will occasionally cause corruption. Depending upon the number of
users, I'd compact the back-end weekly to monthly, and the front-end on the
same schedule. Compact on close does not compact the back-end (data) on the
server, and that's still necessary.

If the database is frequently used for temporary data, it is just as easy to
download a copy of the already linked front-end from the server every
morning, as to compact it.