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My trusted list is empty (at least that's what IE tells me) if that would be Your solution to the problem.
Do You know how to fix that?
My feeling is that the IE security options are extremely knotted up and I can't untangle them very well, especially since SP2. Like you, I rarely use IE for general browsing. When I do, I just take care where I click and I try to use the simplest settings I feel I can afford to. Those custom settings for Trusted Sites are particular obtuse.
I did'n tell You what I'm running on (Your post about SP2 reminded me of that).
IE 6.0
Windows 98 SE (without SPs)
Any other solutions?... Please?...