Follow-up: Right-click the Cancelled message > Select Properties > Write
down exactly what's shown in Address (URL) line and post it in a reply to
this thread.

Also see if disabling Phishing Filter makes any difference (Tools > Internet
Options > Advanced > Security).
--
~PA Bear

PA Bear wrote:
> UPDATE: See if this webpage of MVP Mike Burgess' addresses the problem:
> http://mvps.org/winhelp2002/hostsfaq.htm#message
>
> PA Bear wrote:
>> See 'Known issues with this security update > Controls that prompt before
>> they are loaded' section of http://support.microsoft.com/kb/931768
>>
>> 1. Try opening IE in No Add-ons mode & see if this behavior persists. If
>> it
>> doesn't, change your IE home page to "blank" then close IE7 and reopen
>> normally (i.e., with all Add-ons enabled) and see if the behavior
>> returns.
>>
>> 2. If still no joy, reopen in No Add-ons mode, reset IE settings
>> (http://support.microsoft.com/kb/923737), close IE, open normally and see
>> if
>> the behavior still persists.
>>
>> This is all related to a cross-site security vulnerability addressed by
>> MS07-027/KB931768: http://secunia.com/advisories/24535/
>>
>> Also try this fix, courtesy of MVP Robert Aldwinckle:
>>
>> Start > Run > Type or copy/paste the following into the box:
>>
>> iexplore.exe -nohome -extoff
>>
>> [Note the spaces in the line above!]
>>
>> tony wrote:
>>> I have been running Internet Explorer 7.0 on Windows Vista for several
>>> months and it was working fine. But today I just installed the "Security
>>> Update for Windows Internet Explorer 7 (KB931768)" and that caused IE7
>>> to
>>> stop working.
>>>
>>> After I installed the update and restarted Windows, IE7 will no longer
>>> start. Now when I double-click the icon or run iexplore.exe, the web
>>> browser
>>> window flashes quickly on the screen and then disappears. Then this
>>> error
>>> message dialog box appears.
>>>
>>> ----------------------------------------------------------------------
>>> File Download - Security Warning
>>> Do you want to save this file?
>>> Name: navcancl
>>> Type: Unknown File Type, 2.64KB
>>> From: ieframe.dll
>>> Save Cancel
>>> ----------------------------------------------------------------------
>>>
>>> temporarily, I have three ways to fix it:
>>> 1. retore Vista or uninstall the patch
>>> 2. run IE as Administrator ( which, as a matter of fact, disable the
>>> protection mode)
>>> 3. in IE Options->Securities->disable Protection Mode.