This security setting needs to be enabled for any user supplied value of these Configuration Parameters to be set correctly. Unfortunately IE does show the Local Machine Zone under the Security tab of its Tools/Internet Options menu item by default. It can be switrch on by setting the Windows DWord registry entry HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings\Zones\0 to 47 (hexadecimal). You may download the attached .txt file, rename it to a .reg file and then double click it to apply this fix to your registry. Check the file contents to be
HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings\Zones\0
[HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings\Zones\0]"Flags"=dword:00000047
Once this is done select Tools/Internet Options from the IE menu and click the Security tab, then the My Computer Zone. Finally click Custom Level.., scroll down and enable the option.
Tools
Internet Options
Security
My Computer
Custom Level..,