I have seen weird behavior like this before and we always solved it by completely resetting the browser back to default. It's a pain if you have a lot of custom settings, but give it a try and see if it helps. In IE go to Options > Advanced > Reset, close browser, then try again. You will lose all cookies, history, etc. I've seen this issue with every browser at least once, not just IE. If problems presist, reboot both your server and local client computers.
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