I would like to use trusted security to connect to sql source for OWC. The sql database resides on another server. We do not have kerbos. Reporting services uses basic authentication so the user can enter their windows user name and password. Is there anyway to modify the connection string or application to prompt the user to enter their windows user name and password?
You can use Windows integrated authentication when connection to SQL Server form OWC report. This should not create a double-hop problem because the connection goes directly from the client browser to SQL server.
Also make sure that the anonymous user for TableService.aspx page has the access to the database.