>>Interesting. Usually people are trying to figure out how to do the opposite (download a WMV file instead of have it stream)... anyway - are your .WMV files associated with your media player?
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>Yes, it is. But, IE seems to be stucked with the changed confirmation and is not capable of binding that functionality with the adjustment I did back with the Windows File Explorer.

I had this problem a while back and now I can't remember how I fixed it. I know this is *lame* but maybe if you just reinstall IE it will put all the settings back to default?