You experience the subject behavior because the default Internet Explorer security in Windows XP SP2 prevents access to a file in My Computer.
If you want to relax this restriction, making yourself more vulnerable to malicious users and software:
1. Close all instances of Internet Explorer.
2. Open a CMD.EXE window.
3. Type the following command and press Enter:
REG ADD "HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings\Zones\0" /V 2101 /T REG_DWORD /F /D 0
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