Jim,
I do have the Internet zone set to medium with these specific options:
Download signed activex controls - prompt
download unsigned activex controls - disable
initialize and script activex controls not marked as safe - disable
run activex controls and plugins - enable
script activex controls marked safe for scripting - enable
file download - enable
font download - enable
java permissions - high safety
access data sources across domains - disable
allow meta refresh - enable
display mixed content - prompt
don't prompt for client certificate selection when no cert... - disable
drag ans drop or copy paste files - enable
installation of desktop items - prompt
launching programs and files in an iframe - prompt
navigate sub-frames across different domains - enable
software channel permissions - medium safety
submit nonencrypted form data - enable
userdata preferences - enable
active scripting - enable
allow paste operations via script - enable
scripting java applets - enable
logon - automatic logon only in intranet zone
do you see anything in there that conflicts with what you have?
>Just a SWAG, but check under Tools | Internet Options | Security tab. If the Internet zone is at Custom (due to Windows Update), try setting it to Medium and see if that helps.