After I open Sharepoint inside IE, and click on a Word/Excel/PP document, it opens the proper MS Office application, but does not open the file itself.

The file can be opened from inside of office.

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Which versions of SharePoint and Office are you using? Different versions have different levels of compatability – Shevek Mar 9 '10 at 12:05
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1 Answer

Microsoft Hotfix KB Article Number: 949405

Installed on client machine, worked like a charm!

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