OK, are you using a firewall? Hardware or software?
Did you reboot and retry after doing what I initially suggested?
Did you try typing in an address (not the home page set for IE) and was it the same result?
Oh man, the answer was right under my nose and I didn't even realize it, duhhhhhhh!!!!
Thanks a lot Paladine, it was my firewall that was not allowing access to IE. Good looking out. Thanks again.