Hmmm.... good timing for me... seems I had a client with EXACTLY this problem only yesterday. Took me a while, but for them it turned out that the reason was that the PDF was coming over an encrypted link (https), and the IE Advanced Option to "Do not save encrypted files to disk" was set... so the PDF file was NOT being saved to disk, and thus could not be shown.
The fix for us was simple -- uncheck the option in the IE Advanced settings (Tools -> Internet Options -> Advanced) and restart IE.
This fix worked for both IE7 & IE8 for my client.
I hope this does it for you!
Good Luck
Dan
IT4SOHO
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by: omarfaridPosted on 2009-07-28 at 07:58:35ID: 24961311
check the IE caching setting and clear it if possible