The IE Team Blog and The Microsoft Security Response Center have both just posted that an update has been added to the KB article 931768 which relates to last weeks IE7 security update. A pointer was added to a new article, KB937409, which details the issue many users are having with a ‘navcancl’ error when opening IE7 after applying the KB931768 update.
The issue was pointed out here in the comments of my KB931768 update post the day after it’s release. I wrote a post that has since had thousands of views pointing out the issue, and in the comments we came to realize what Microsoft has now confirmed: the problem is caused by moving the temporary internet files directory. The customized location doesn’t have the same permissions as the default location, which causes the error.
If you are having this problem, see KB937409, which details two workarounds. It’s nice to see Microsoft respond to the issue in such a strong way, helping the many troubled users out there to get back on track.

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Comments
James Snell
May 16, 2007 at 10:56 pm
I’m glad Microsoft posted KB937409 and the reference to it in KB931768. I’m not glad that it took Microsoft over a week to respond to this issue. KB937409 describes 2 workarounds, but the 1st one defeats the purpose of IE’s “Move Folder” feature, and the 2nd one either isn’t doable on some versions of Vista or is missing a key piece of info (getting the Security tab in the folder Properties dialog). Also the article says to use these workarounds at the user’s risk. So Microsoft still needs to release another update that fixes the bug in MS07-027 (KB931768).
Workaround Method 1 (move the TIF folder back to its default location) worked, but it’s highly unsatisfactory for users who moved the TIF folder for a good reason, such as wanting to prevent it from being backed up automatically.
Workaround Method 2 (grant permissions to the TIF folder) I couldn’t even complete, because step 6 refers to the Security tab of the Properties dialog for the TIF folder, but on my computer running Vista Home Premium no Security tab is displayed, only the General tab. (Note that between steps 4 and 5 there are two items missing, namely select the TIF folder, and then if it’s not displayed, go to Tools > Folder Options > View tab and select Show hidden files and folders. Perhaps there’s another setting somewhere that displays the Security tab in the Properties dialog for a folder, but I couldn’t find it. Plainly Microsoft failed to test the instructions adequately before posting them, just as they failed to test the update adequately before releasing it.)
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