After searching over the past few days, I found this link that [Microsoft] suggested installing Service Pack 1 for VS2008. In the link, they do not explain what the problem is or how it was caused, but installing SP1 solved the problem!
I assume the problem is with IE8 / 9 LCIE function. Although the fix for this suggested by several posts that I found does not work for me: Disabling protection mode and / or adding DWORD with the name TabProcGrowth value 0 in HKEY_LOCAL_MACHINE->SOFTWARE->MS->IE->MAIN .
In any case, my problem is resolved, and if someone else encounters this, try installing SP1 for VS2008 and be sure to run the Service Pack Preparation Tool, if necessary, in advance.
Nick Rolando
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