When you use One FileMaker File to open another, FileMaker first attempts to use the account name and password of the open file to open and gain access to the other file. If there is no account name and password in the 2nd file that matches, FileMaker then pops up the log in dialog. Thus, you are most likely seeing the password dialog to access the file on the server.
Again thanks for the quick response. Followup question. Does the privillages needs to be set in the shortcut FM or in the Database it self? and should this be done in server computer or I can create the shortcut in any computer and then just send it to who ever will use it?
That depends on what you want to set up. The results can look identical to the user.
Any privilege set that you specify for the opener file will have no affect on access privileges in the hosted file.
Assuming that you want the user to enter a password each time that they connect to the database. I'd leave things as they are. Either with no password defined on the "opener" file or with an auto-entered password (see field options) that only permits read only access. The user then get's the password log in courtesy of the hosted database when they double click the opener file.
You could define a matching account name and password in the opener file and set it up in file options to auto-enter the password. Then you can open the hosted database by double clicking the opener file and you will not get any password log in for it. But this then opens your database to access for any one who has access to the computer where you place the opener file so this can represent a significant reduction in security.