Ah! Thanks, you made me search even further.
I made it, here are a few pointers for trouble shooting
behavior url with ".htc" extension
1) server confic does not recognize .htc
2) in a PHP environment upload also PIE.php and follow instruction.(Worked in my PHP environment)
3) you might give a try to the uncompressed .htc
4) toy with real path
Conclusion: PIE is the only method that I could make working with IE8