Acrobat 8 - IE7 - XP - TIF Images linked from website

Question

All,
We use Adobe Acrobat 8 Standard and Professional on a number of Windows XP desktops that are updated nightly with a Windows Update Server.  We manually configure workstations to open TIF images with Acrobat such that they open just like a PDF would.  This worked GREAT until last week.  Some Windows Update (seemingly) has made it so that now when we associate .TIF files with Acrobat they open fine from the desktop, however if you open Internet Explorer, goto a page with a TIF linked, click the TIF, Explorer says that the file is not able to be opened with the default application and asks me to save.
Expected Operation
1. User goes to www.pagewithtif.com, clicks image.tif
2. Explorer asks if they want to open or save
3. User clicks open and Acrobat loads (just like a PDF).
Observed Obersation
1. User clicks file
2. User greeted with "SAVE/CANCEL" dialog (no open!) saying the file cant be opened by the default application
3. After saving, the dialog disapears with no open!
I have tested this with a virgin Windows XP image with ONLY IE7 and Acrobat installed, no other configuration except configuring TIF's to be opened with Acrobat.
IE has the Adobe Plugin listed.  PDF's work as expected.  It works fine in Firefox.

Answer 1

I remember what the difference is. I used to have different choices. [Open] [Save] [Cancel]
I used to Always choose OPEN for pdfs. I could choose to save later if I decided to keep the file. Is this a change that Adobe made? A browser plug-in, maybe?
I really dont want to save EVERYTHING, and have to remember to drag it to the recycle bin later.
Any help?