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It is a Chrome isseu! I have reinstalled Chrome, set IE as my default browser and the links in my e-mail messages are working again!
If I uninstall Chrome, the links aren't working.
I think while unstalling Chrome one or more .DLL needed in Outlook are removed too, only I have no idea where to look for this.
Thank you,
Irma

Yes, I have tried everything. When I use Chrome as my default browser there is no problem, with Chrome installed and IE as my default browser there is no problem too. The problem starts after uninstalling chrome. I live in the Netherlands and have therefore a Dutch system, the message I get while clicking a link is "Deze bewerking is geannuleerd vanwege systeembeperkingen. Neem contact op met de systeembeheerder". In English something like: "this version has been cancelled because of system restrictions. Contact your system manager" So I have to contact myself to solve the problem only........I can't!
Thank you,
Irma

By the way, I use Vista Business if this is of any help.
Irma

I will try this tonight and will let you know if it works.
Thank you for your help,
Irma

I couldn't wait till tonight......had to try it and...............it works!!
Thank you so much for your help!
I think that this solution also need to be posted in the Dutch Forum. Saw several messages about this problem there too.
Again, many thanks,
Irma

You are welcome.  :)

I followed the steps above from nondescript and still get an "application not found" whenever a facebook link comes up.  I used to trust Google products, but no more.
I'm running Vista, using IE as default browser, have uninstalled Google Chrome.  What gives?

The solution provided by irmalommen sorts out the problem where the following is true (just feeding the search engines):

Application: Microsoft Outlook 2007 Service Pack 2 (SP2)
Operating System: Microsoft Windows Vista Business Service Pack 2 (SP2)
How to recreate: Try clicking any web link in an email
Message from Outlook "This operation has been cancelled due to restrictions in effect on this computer"

Hope that this helps other people find this solution.
MSDL

I have used irmalommen's suggestion and still get the same message. I uninstalled Chrome a few weeks ago and lo and behold this rubbish starts happening. I am starting to worry that Google are getting too commercial and gonna become another big siftware company. I am using XP service pack 2 with Outlook 2007. Can anybody help please?

Success - I just used sprudd's recommended link and it worked - thanks sprudd :-)     
I followed the instustions under Set Program Access in Control Panel.
I don't understand all the other IT jargon in this post & the link explains it clearly to the unlightened among us.

The link again:
http://www.slipstick.com/problems/link_restrict.htm

My problems started hen I uninstalled Google Chrome, and I found I could not access my hyperlinks in Outlook 2007 home version.
After searching net, via microsoft help I eventually came to this help page.
I followed instructions, and hi presto, the hyperlinks are working again.
Many thanks to all those who have the knowledge and the willingness to help others.

nondescript's registry key revisions solved the problem.

Can't change the default browser to IE.  When opening Chrome the Make Chrome the dafulat browser if grayed out.  Can't change to IE.  I keep going into IE and selecting default browser but it keeps being whiped out.  Any ideas?  I can't work with the registry key solution as I do not have admin rights to the computer at work.

@nondescript Thank you, thank you, thank you!!!

I have the same problem. Installed CHROME took it off in about 5 minutes, hated it, then loaded Windows 7 the next day, also installed IE8, but email hyperlinks won't work. Did same with wifes computer (Windows 7 and IE8) and she has no problem, but she also never installed CHROME.  Followed the steps above, but same error message.  Question - when I EXPORTED, I named one HKCU_Classes_HTML_Backup.reg, the next HKCU_Classes_HTM_Backup.reg, the next HKCU_Classes_SHTML_Backup.reg and then under modify put in HTMLFILE for one, HTMFILE for the next, and SHTMLFILE for the third.  Is this correct ??? Or should they have been named differently.  After this did not work I also found XHT and XHTML to also be listing CHROME so I changed them, but nothing.  Did I do all of this correct ?? Any suggestions ??? Thanks

This worked perfect for me. For me it worked best by printing this help and going over it point by point.
Good luck,
Irma

Restore registry settings in the User Profile
1. Click Start, click Run, type Regedit in the Open box, and then click OK.

2. Locate the following subkey:
HKEY_CURRENT_USER\Software\Classes\.html

3. On the File menu, click Export.

4. In the Export Registry File dialog box, enter HKCU_Classes_HTML_Backup.reg and click Save.

Note: This will create a backup of this registry key in the My Documents folder by default.

5. Right click the (Default) value for the .html key and select Modify...

6. Change the value from "ChromeHTML" to "htmlfile"

Repeat steps 1-6 for .htm and .shtml keys if they exist, remember to change the name of your backup file for each export.

It worked.  I needed to make sure that the MODIFY portion of each of the 3 sections I changed went to htmlfile regardless of it was htm, html, shtml. I also did these steps for xht and xhtml (which listed CHROME) and MODIFIED both to XHTML.  Thanks

I am glad it worked for you.
I thought it was real frustating when things didn't work properly any more after my 'Chroome adventure' :(
And it seems that they never solved this problem! Shame on Google!
Greetings from the Netherlands.

Thank you Irma and everyone who has contributed to this article!  Just prior to installing Windows 7 I removed "everything" google from my computer.  On my first attempt to use Outlook email I was totally surprised that hot links wouldn't work.  While searching for a solution to the problem I found this article and decided to follow the steps listed in "best answer".  Following the steps worked!  Being a 61 year old computer novice I was wonderfully surprised!  Again... my thanks to Irma and everyone who has taken their time to make the computing world a friendlier place to work and live.

This has probably been the best reply that I have read and corrected my problem, too. However, (don't you hate it when someone says that) I have also found other entries concerning the Google Chrome program in the registry. One reference is made under 'Computer\HKEY_CURRENT_USER\Software\Classes\http\DefaultIcon' & the Data is  '......User\AppData\Local\Google\Chrome\Application\Chrome.exe, 0' and others under 'http'. There are similar entries under 'ftp' (instead of 'http'), 'https' & more. What should be done about them? Personally, I feel that it's about time Google read some of these, probably 'isolated incidents', and admitted to this problem and said sorry and fixed it at it's source. Otherwise I guess there will be many users walking away from Google, at the moment I feel like leading the pack. Victor - PS don't spread it around.

Thanks dmarz911...  I posted the original reply rapidly when the issue came up and never did revise the list...  You are correct, .htm .html .shtml .xht and .xhtml are all keys that need to be reverted back to their original value if doing the manual reset to the IE default process for file extensions, and http, https and ftp need to be addressed for URL handlers.

Since this thread is still getting traffic, I'll update the original instructions once I setup a clean machine to pull information from.  In the interim, the original information should at least get anyone to the point where they can go to the IE options, programs tab, and use the "Make Default" button to restore the remaining keys and associations.

Tried all the online fixes for this Office error, however I did forget that I had installed and removed Google Chrome last week. This fix worked like a charm

Thanks so much