Cognos 10.2.1 Excel Output Not Rendered

[kderoos]

Issue:
User runs an Excel output interactive Cognos report.  Report runs successfully, but she is not prompted to Open or Save the report output.

User can then select an alternate report output (HTML, PDF, even Excel) and the report renders correctly.  The report does not re-run for output, it just displays the returned data in the requested format.

Excel output runs correctly for user in Firefox and Chrome.

Excel output runs correctly for user in IE on a different machine.

Disabled pop-up blocking.

Added Cognos server to Local Intranet in IE security settings.

Modified security levels for local intranet as follows.
1.   Scroll to Downloads section
2.   Set Automatic prompting for file downloads: Enable
3.   Set File download: Enable
4.   Scroll to Miscellaneous
5.   Set Allow META REFRESH: Enable
6.   Scroll to Scripting
7.   Set Enable XSS Filter: Disable
8.   Click OK
9.   Select Advanced tab
10.   Scroll to Security section
11.   Uncheck Do not save encrypted pages to disk

Thoughts/suggestions?