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We have faced the same issue before. In our case, the high interactivity file placed at server location has different name and folder (virtual directory) has different name. Ideally both should be same(File name and folder name). Check the local file name at "C:\Windows\Downloaded Program Files" location. And also check the file name at server location and server folder name.
It could be that the ActiveX is damaged.
Are you by any chance working on an upgrade?
In other words, were you connecting to two different Siebel versions?
There are some things you can check.
See the following post on Supportweb: ActiveX Controls do not get downloaded [ID 1065994.1]
When the ActiveX hasn't been installed yet, what happens when you open the predeploy.htm file?
And you might want to have a look at the following post:
Web Client Deployment Options for Siebel versions 7.x and 8.x [ID 476952.1]
Edited by: jiyong on May 15, 2013 7:41 PM
Thanks for the replies. I am not sure its an Activex issue or not. Everything else works just fine. My user could access the GE site with no issues until one day last week. All of a sudden he now gets that issue. On my pc when trying it I get the same result. When looking in the Windows\ downloaded files folder there isnt' anything listed at all as 'Siebel'
Have you tried to access the predeploy html page?
Are there any popup blockers active through a custom toolbar (something like the Google or Yahoo toolbar)?