IE7 blocks the interactive mode of XML opened files. In the interactive mode you can collapse/expand the XML nodes. If you open an XML file from your local file system, IE7 shows an information bar with this message:
"To help protect your security, Internet Explorer has restricted this webpage from
running scripts or ActiveX controls that could access your computer"
You can click on the bar and enable the ActiveX control, or enable it permanently. To do so, follow the following instructions:
- Open Internet Explorer;
- Open the Internet Options;
- Switch to the Advanced tab page;
- Scroll down and set the check box Allow active content to run in files on My Computer*;
- Restart IE
Because this affects the security of your system, be sure you know what you do. I turned it on because I'm using an isolated secure development machine.
Hope this helps,