Most likely you are getting prompted for password to cache your key in the registry, since you have the option checked to store keys in the registry. Please check the password prompt and see if it says "Authenticated with partial success".
The password is necessary if your user is going to do any kind of network access, or any administrative tasks. If you do not need a cached password, turn off any feature that would ask for it.
Those features include:
Authentication -> Password Options page:
Store Passwords. This should be set to Never.
Authentication -> Public Key Options page:
Store keys in authorized file should be unchecked
Automatically store keys in registry should be unchecked.
Pragma Systems Technical Support
13809 Research Blvd, #675
Austin, TX 78750