No, definitely no request for credentials. It's sitting in front of me now, just waiting. If memory serves, I've left it that way for as long as 10 to 15 minutes with no change. Granted I do get impatient.
A coworker has suggested an alternate theory that I'm about to look into. He suggested that there might bea limitation with the server on the number of connections allowed. In the past this particular server has been notorious for limiting the number of Remote Desktop Connections at one time. (Not that I necessarily think this is related but I haven't had that problem for some time. Also I can't publish to any server, not justthat particularserver.)
Also I should mention that given this problem I have been logging into the server via RDC, and publishing the program to itself with it's own install of VS2005. That works without problem.