Can you try this:
In IE go to TOOLS -INTERNET OPTIONS -ADVANCED tab and then scroll down to SECURITY.
Check the box that says ALLOW ACTIVE CONTENT TO RUN IN FILES ON MY COMPUTER.
APPLY and OK.
Also, in this same ADVANCED tab go to Java (Sun) and deselect if there's a checkbox there saying to use a certain plugin version
Then try it again and see if you have the same problem.