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It seems that the problem was caused by "cumulative security update for internet explorer 7 for windows XP (KB947864). I have removed it and everything is fine.

My default browser if Firefox, but I still need to use IE for certain things, otherwise I would have left it.

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I've been trying to fix this issue since last month, still haven't done it. Firefox works for me too so I'll try to remove that update and see what happens. Thanks for the info. Much appreciated.

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