This is not anything to do with POPFile; POPFile does not store any email passwords when used as a POP3 proxy.

When Outlook tries to check for new mail it sends commands (including the password) to POPFile which passes these commands on to the real email server. As messages are retrieved, POPFile reads the incoming messages, tries to classify them to the categories you have defined and then passes them on to Outlook.

When Outlook has trouble connecting to a mail server it will show that password pop-up. Since you are using POPFile as a POP3 proxy the pop-up refers to 127.0.0.1 because POPFile is acting like a mail server as far as Outlook is concerned.

This seems to happen when I get intermittent wireless network problems.

When you have a wireless network problem POPFile will be unable to access the mail server which means that POPFile will not be able to pass the responses on to Outlook ... and this will result in Outlook displaying that pop-up message. Outlook thinks the problem is with the connection between Outlook and POPFile but in fact the problem is that wireless network problems are preventing POPFile from accessing the real mail server.

Brian