FF thinks PDF files are binary files, doesn't give me the option to open them

I just got a new Mac, running OSX 10.7 Lion. I downloaded Firefox because I like it better than Safari. It's Firefox 7.0.1.
Aside from the fact that I can't figure out how to get all my bookmarks from the old mac to the new one, a really annoying thing is that I can't get the new Firefox to recognize PDF files as Acrobat documents. It thinks they are "binary" files, and the only option I have is to save them to disk.
I looked at the Applications preferences, and there is no entry for PDF files. I can't seem to create one. I checked the help and it says that to add a download preference you find the type of file you're interested in, click to download it, and tell it "open with" the application you want. But I don't get that option with PDF files, it doesn't let me tell it what to open it with, the only thing it allows me to do is either save to disk or cancel.

I use Internet Explorer for my browser.
A/A - I have reinstalled the latest version of AdobeReader.
When I click an attachment to view it, the first option I am given is to 'save' the file, and then the next pop up message gives me the option to either 'open' or 'view file'. The thing is that I don't want to 'save' each file to my laptop to allow me to see it. I want to be able to merely 'open' the file to view aithout actually saving it first.

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