I am having the same problem as the person who submitted this question alogn time back but mine is with IE9 and Windows 7. IIE9 opens the "View Downloads" dialogue whenever you try to open it or click on a link, eg and html file on the desktop. The original question title was:
Internet Explorer 8 downloads htm file instead of displaying
Thanks for any suggestions. I tried resetting the htm and html file associations, didn;t help.