Sorry I don't have a true knowledge of what you're doing.  I personally don't surf that way and haven't learned to do it myself.  But some general troubleshooting my help.  Have you installed any new web applications, software patches, or Windows updates.  Any of these may have caused any unknown setting to have been altered causing this problem.  ReInstalling Explorer was definatly a good step but with the level of intergration on Microshaft products it won't allways  reset all of the settings.  It would seem that some HTML setting in your browser has been disabled for off-line use but that's me just talking our a not so nice orrifice.  I know that there's a way to disable pic's for online veiwing but I don't know if offline veiwing has the same options or even if this may lead you down the right path.  Just some food for thought and hope it helps.  Last thought go to the Tools Menu.  Go to Internet options and select the Advanced tab.  You may want to write down the settings if you can't print them and haven't messed with this before.  Then when your sure you can restore them to the current setting select the Restore Default and that should take care of it.  Good Luck