>All I'm trying to do is to display an file (test.htm) that is located locally. I don't need a http connection or anything. Seems like I shouldn't need a server installed. What do i set the serverinstalled property to?

You need a server. You don't have to believe me, but you'll be wrong. Very, very wrong. The WebBrowser Control is nothing more than an ActiveX controlk that talks to an out-of-process instance of internetexplorer.application - look and you'll get a clue.

You can associate any of a number of servers for the file type htm through the registry HKEY_CLASSES_ROOT; no magic - it's the same mechanism as every other class association.