I tried exactly what you described Michael. However, when I add the server name to the Intranet Zone, then try to run the program on the mapped drive, I get an error "you do not have access to the specified device, path, or file. You may not have the apprpriate permissions to access the item"

If I remove the setting, I am prompted to open or cancel - and I can open the program w/out a problem

Any ideas? I'd like to leave the IE Security stuff installed - as this is a terminal server