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IE 7 not opening office links in correct office application

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Ash575

MIS
Jun 16, 2008
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Windows XP SP3, IE7 and Office 2002.

I have a user that goes to our intranet site (backend is sharepoint) to a documents repository.

They will go to a word or excel document/form they want to use/fill out and click on the link. They get prompted if they want to open, save or cancel with the standard security box warning.

If they select open, the file will only open in the same browser window, not opening it in the correct office application. I have tested the links on other computers and it works the way it is supposed to (opening the document in its correct software application).

I have gone through and reset all the security settings back to default and added our intranet site as a trusted site. Neither change did anything. Anyone have any thoughts on what might be going on?
 
If you save the file to desktop or My Documents it works fine. You double click on the file and it will open with the correct application word/excel.
 
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