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Hyperlinks in Outlook 2010 emails do not open browser

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I have 2 PCs with nearly identical software configurations except for the OS.
One PC uses Windows 7 Ultimate x64, the other uses Windows 7 Home Premium x64.
Both have Office Professional Plus 2010 and Norton Security Suite 4 installed.
Both PCs have all available updates installed.

My problem is with hyperlinks contained in emals received into Outlook 2010.

On the Ultimate system, the hyperlinks work properly, that is, clicking a hyperlink opens a browser window, as expected.

On the Home Premium system, the hyperlinks don't work at all correctly.
The first time any hyperlink is clicked, a message box titled "Windows" pops up with the following content:
  Windows can't open this file.
  File: http://www.youtube.com/watch_popup?v=LO2eh6f5Go0
  To open this file, Windows needs to know what program you want to use to open it.
  Windows can go online to look it up automatically or you can manually select from a list of programs that are installed on your computer.
  What do you want to do?
  The first option button is labeled "Use the web service to find the correct program."
  The second option button is labeled "Select a program from a list of installed programs."
If I select the first option, nothing appears to happen.
If I select the second, I get a pop up with a list of apps.  I select Internet Explorer. check the box labeled "Always use the selected program to open this kind of file", click OK and the browser opens.
However, if I go back to the same email and click the same hyperlink during the Outlook session, a window pops up asking me to confirm that I want to open the link using IE.
If I click on any other hyperlink, in the same email or any other email, I get the first pop up "Windows needs to know what program..."

I didn't see any Outlook settings that would affect this behavior.

Any clues about what needs to be done to fix this very annoying behavior?


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