Today I finally spent a few minutes and resolved this issue. It appears to happen when you install and set another browser as the default.
This is from the Microsoft site:
The Locate Link Browser dialog box appears when you open a Web link in an e-mail message in Outlook 2003
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Article ID
:
821692
Last Review
June 22, 2007
Revision
SYMPTOMS
When you click a Web link in an e-mail message in Outlook 2003, the Web site opens in a browser window and the Locate Link Browser dialog box appears.
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CAUSE
This problem occurs on a Microsoft Windows 2000-based computer that has a third-party browser that does not support Dynamic Data Exchange (DDE), such as Netscape Navigator and Mozilla.
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RESOLUTION
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To resolve this problem change the registered file type for the URL:HyperText Transfer Protocol file type to use Internet Explorer. To do this, follow these steps:
1.
On the desktop, double-click My Computer.
2.
On the Tools menu, click Folder Options, and then click the File Types tab.
3.
In the Registered File Types list, click URL:HyperText Transfer Protocol, click Advanced, and then click Edit.
4.
In the Actions box, type open.
5.
In the Application used to perform action box, locate Internet Explorer (Iexplore.exe), and then click Open.
6.
In the Application box, type IExplore, and then click OK.