It is working as designed.
The first time you access an application database from a workstation you are asked for the application database password for that user. Once correctly entered, the password is retained in the workstation database for access the next time you wish to enter that application database. The key password is the workstation password which always is prompted for.
Each user should have their own workstation database accessing the appllication databases they are allowed to enter. This can be done in the same NV2 folder or you can subfolder the user workstation databases.
See the NewViews 2.0 Manual > The Workstation > Workstation Passwords and also Running more than one workstation for more information.
Regards to all