Files in Companyweb are Opening Read-Only After SBS 2008 UR2

[Today's post comes to us courtesy of the Rod White, Chris Puckett, Damian Leibaschoff, and Justin Crosby]

We have discovered an issue with SBS 2008 UR2, that will cause documents opened from http://companyweb to be in read-only mode in your browser (i.e. Word/Excel/etc. is not launched).  You may also notice that certain elements missing from document menu on the site.  These include:

• Open in Microsoft Office <application name>
• Upload Multiple documents
• Send to
• Options that explicitly refer to a client-side Office application (Excel, Word, PowerPoint, etc.)

Resolution

To fix this issue:

1. Open SharePoint 3.0 Central Administration.
2. On the Central Administration home page, click Application Management.
3. On the Application Management page, in the Application Security section, click Authentication providers.
4. On the Authentication Providers section, click on Default (or relevant) zone.
5. Under Client Integration, change option to Enable Client Integration to Yes and click Save.