THANK YOU FOR THIS!!!
It took me several tries. Finally it worked after I added it as the very first entry after <flash> rather than at the end.
And yes, deleted browsing history etc several times previously.
The only thing that does not work is a drag and drop operation.
The only reason I need this is I am working on a website for a client. The backend has a flash based file uploader. If I drag and drop a file into that box then it will just load the pic in ie. Fortunately, there is an upload button where I can browse do the file location.
But other than that minor inconvenience, this is absolutely fantastic.