this operation has been cancelled due to restrictions in effect on this computer

I recently updated my internet explorer from 7 to 8, now each time I try to download a file I get the error "this operation has been canceled due to restrictions in effect on this computer"

I am an admin on the machine, I did reset the browser, uninstall and reinstall IE 8 and made sure that IE 8 was the default browser on the machine.

I have tried Firefox and downloading files from the internet works as it should.

Thanks for the help.
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See if this setting exists for some reason.....

Disable File Download in Internet Explorer
jfountaineAuthor Commented:
The entry does exist but the setting is set to "downloads enabled." I did disable the setting and reboot the PC, which this did disable the downloads. Then re-enabled the setting to allow downloads and I'm still having the issue.
Check the Security Zone for IE, there is an option about halfway down "File Downloads:Enable/Disable/Prompt"... See what that one is set to,.....
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jfountaineAuthor Commented:
This is set to enable. I set it to Disable and applied the setting closed out of IE and changed it back to Enabled but the problem is still around.
jfountaineAuthor Commented:
I had to change the registry key NoSelectDownloadDir to 0. I found this in:
HKEY_CURRENT_USER/SOFTWARE/Policies/Microsoft/Internet Explorer/Restrictions

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Forgot about that one...  :-)

Glad youre fixed....
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