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This error has annoyed me a hell lot. It usually happens to me after uninstalling a beta version of Firefox in order to install a later version of it.
The Microsoft KB article: You receive an error message when you click a hyperlink in Outlook does not really help much.
However this Doug's VBScript seems to work!
fix_internetoptions.vbs - Disable/Enable Set Internet Options in Win95/98
You really have to log off and log on again to see it working.
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