Thanks Joshua, I didn't realize that setting was there but unfortunately that didn't solve the problem. I enabled it for all privilege sets but still no-go. I even restarted the server.
One thing I did that *may* be causing this problem is that I uninstalled v15 after installing v16. Perhaps the uninstall action removed a registry setting...... but I'm just guessing.
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That happened to me in the past as well. The uninstaller is removing the registered URI protocol from the registries. Start the FM16 installer and choose repair, it will fix it.
By the way, the new extended privilege set is only for allowing scripts to be executed from URL, opening files works even without it.
You are correct on both accounts. Repairing the install fixed the problem and the URL method works without enabling the Extended Privilege.