Opening Documents in Office 2010 and SharePoint 2007

Setup a fake proxy in IE:

Open up Internet Explorer
Click Tools –> Internet Options
Click the Connections tab
Click LAN settings
Check “Use a proxy server for your LAN (These settings will not apply to dial-up or VPN connections).”
Enter 127.0.0.1 for the address
Click Advanced
In the Exceptions type: *.*
Click OK, OK and OK