We're seeing complaints from users with 32-bit versions of Office 2010, plus Outlook 2007, and Outlook 2003 installed on Windows 10 that hyperlinks in email won't open after they've set Internet Explorer as the default browser.
For solutions to the "This operation has been cancelled due to restrictions in effect..." or "Your organization's policies are preventing..." messages, see This operation has been cancelled due to restrictions. If you removed Internet Explorer as an Optional Feature, see Albert's discovery. (You'll need to reinstall IE.)
The user will see a dialog that asks what program you want to use to open the link. Clicking the Always use this app box does not save the changes - the next time you click a link, the dialog comes up again.
Only Internet Explorer has a problem opening links, they work fine in Edge or Chrome, just not in Internet Explorer.
To fix it, add this value to the registry:
Default value: "C:\Program Files\Internet Explorer\IEXPLORE.EXE" %1
The Default value above will open the link in a new browser window. If you want to use a new tab in an open browser, use cmd /c START "C:\Program Files\Internet Explorer\iexplore.exe" "%1" instead.
Links containing an & should open properly in new tabs using the command line above. The original CMD version offered by Microsoft did not work with & signs in the URL. The registry file was updated with the new command line.
Do It For Me
To remove the OpenNew key (and Command subkey), use this reg file:
Double click on the link to run it. If it opens as a text file in a new browser window, you'll need to right click on the link and choose 'Save target as' (or 'Save link as' in Chrome). You may need to change the file extension from txt to reg then double click to run it.