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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 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

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.

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

I had this problem, "When clicking on a hyperlink in an e-mail, I get this Message : "This operation has been cancelled due to restrictions in effect on this computer. Please contact your system administrator."

I reached the link "http://www.slipstick.com/problems/link_restrict.htm" and tried all the solutions under "To fix it, try resetting Web settings in Internet Explorer. If this does not resolve the issue, set IE as the default browser following the steps in Set Program Access in Control Panel. If you use a different browser as your default, you need to set IE as the default until you verify the links work in Outlook."

I finally read and tried the souution for Google Chrome Removal "If you uninstalled Chrome (or Firefox) and then received the error, see Edit Registry, Part 2"

THIS WORKED LIKE A CHARM AND SOLVED THE PROBLEM IMMEDIATELY. I had to change the registery entries in all the KEYS namely: .html, .htm, .shtml, .xhtml and xhtm keys by changing the value from "ChromeHTML" to "htmlfile"

I am writing this entry to share my bad experience with Google Chrome. I had to uninstall the software due to it taking over about 4 GB of space and increasing every day, unless someone actually remembered to erase some data. After the uninstallation it has left problems all across the registry and my computer. Google is actually proving more intrusive than Microsoft in their softwares!!

Be Warned!!

PS: The sad part is that the most dependable, unobtrusive and light browser does not work on a lot of websites showing RUNTIME ERRORS or simply no reaction to pressing buttons. This includes a lot of Bank websites and even trying to send a Feedback Mail on the slipstick.com website. This is the power and manipulation of MICROSOFT, because they all are configured to work on IE. Sad... but true!!

I have win7 and experience the same problem.  I am not as computer savvy as you.  When renaming xhtml & others, do you simply remove chrome and add file?

No, you don't add files you just change all were it says 'Chrome' into 'html' . That way you indeed remove Chrome, it's the only way sofar.
Succes!

Worked great!  Thanks

google programmers should be hog tied and whipped for being so arragant and for acting and pretty much being like Microsoft.. why do they have to hijack the reg settings so deeply that after uninstall things are screwed teh #($&#&#( UP. It is pathetic because google knows there are millions of people who use Outlook and the unistall issue will effect many. I like googel a lto but this is pathetic that this problem has been around for so long and nothting has beeen done about it. get a grip google between your nexus 1 support issue and your growin arragance your are wel down teh path to becoming as creepy as Microsoft you MFs'

This was a PITA...Bad Google!

GOOGLE - FIX THIS ! This is totally ridiculous. Chrome destroys the ability to click links from emails...not just the old Outlook, also Windows Mail ! Also your super wonderful Chrome crap destroys the ability to use Windows Update! Now when I click on Windows Update, it says.. Application Not Found..............GREAT !!!!!   I'm not sure how I'm going to fix that short of a complete reload of Windows XP......FIX THAT ALSO !!!!!!  Don't send me anymore of your crap and ask me to run it until it is completely finished and doesn't cause hours of anxiety and concern !!!!  Your chrome is peeling.......badly  !!!

Looking at my Registry I find over 50 entries involving Chrome.  The suggestions provided here only address about 4 of these entries.

GOOGLE You created the virus called Chrome. How about providing a program that will remove your virus?

Nondescript's method worked for me. (2nd post from the top).

Clearly Google Chrome is to blame here.  The fact that this problem has been identified for over 6 months and has still not been fixed by Google seems to indicate they are bent on dominating the browser market with some pretty nasty tactics. Shame on you Google. Until now, I held you in high esteem.  If you mess with my registry then your uninstall program should remove all of your garbage.  FIX IT NOW.

this worked great for me too.  Just remember to do a restart when done and it worked.

Tried to follow nondescript's recipe for editing registry key but was unable to complete step 5 as "modify" was not an available option on right-clicking.  Therefore, followed advice from elsewhere to reinstall Chrome in order to fix problem.  This worked ok.  Then I had to make IE my default browser in order to then designate Firefox my default browser.

If you have your mouse properties set for left hand - the buttons would be reversed; but I take from your comment that you did get a context menu that had different options than I described.  I suspect that you were clicking on the "key" on the left named .html (with the folder icon) not the "value" on the right named (Default)...

Worked perfectly, thanks, been dealing with this issue for months.

tried nondescript answer but I'm all new at this and get stuck at 5. Right click the (Default) value for the .html key and select Modify...

6. Change the value from "ChromeHTML" to "htmlfile".  Where is the deafault value as I can't see anyway .html key. Please help