Using Exchange 2000 and OWA I was experiencing the same behavior. First I made the \Exchweb\bin\usa a Virtual Application, then I set the IIS Authentication Method to "Integrated Windows Authentication." That appeared to solve the problem. It completed successfully and did not prompt me for a login to exit.
Check that...administrators didn't get prompted for a username and password. Setting the authentication method to "Anonymous" for the logoff.asp page removed the need for username and password to logoff for users . Sorry about that.
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