You know, I get a same type of error when I try to view a HTML document from a floppy, but I then hit ok on the error and it launches the page to view in Netscape okay then.
Have you tried just opening IE or Netscape and then typing in the local address manually?
I know if you type it in manually, it should look something like this in the address field,
file:///C|/whatever the path or file here.html
The line after the C or D, wherever it is stored is a pipe, the thingy above the backslash.
Hope this works possibly.