Unfortunately, no - matches mine exactly, as it should at Medium. Is your Privacy tab setting also at Medium? If so, my last attempt would be to stab the "Restore Defaults" on the Advanced tab. I'm not seeing your problem here, and the "setting" that Michel alludes to escapes me. I have seen several Update hotfixes cause strange IE behavior and resetting to defaults has worked for me before.

>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.