This operation has been cancelled due to restrictions in effect on this computer

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This operation has been cancelled due to restrictions in effect on this computer

One of our clients has a SBS 2003 domain. All workstations are XP running IE 7. When they try to add goodsearch as search engine, they receive this message: "This operation has been cancelled due to restrictions in effect on this computer". What I did so far:

1. Try to disable anti virus software.
2. Logon administrator account.
3. Try different computers.
4. Try to reset IE.

Still receive this error. Could this be a group policy issue? If yes, where can I check or disable the policy? If not, what could be the problem?

1) IE is not the default browser;
2) There is 3rd party browser installed but not installed well.

So I suggest you do following to troubleshoot this issue:
========================================
1.Set IE as default browser:
1) Start -> Default Programs -> Set Program Access and Computer Defaults
2) Custom, Choose a default web browser
3) Select IE
4) Click OK.

2. If no help, please temporarily uninstall any 3rd party browser.

3. Make a clean boot to prevent 3rd party services and startup items to be
loaded.

Also try this: Troubleshooting:
===============
1.Reset IE.

2.Ensure there is no 3rd party browser installed because many existing such
issues are caused by 3rd party browsers, e.g. Firefox or Chrome.

3.Set file association by changing default value of below keys:
HKEY_LOCAL_MACHINE\SOFTWARE\Classes\htmlfile\shell\open\command
HKEY_LOCAL_MACHINE\SOFTWARE\Classes\http\shell\open\command
HKEY_LOCAL_MACHINE\SOFTWARE\Classes\mhtmlfile\shell\open\command

1) If you are using 32bit OS, modify the value as below:
"C:\Program Files\Internet Explorer\iexplore.exe" -nohome
2) If you are using x64 OS, modify the value as below:
"C:\Program Files (x86)\Internet Explorer\iexplore.exe" -nohome

4.Grant Full Control permission to SearchScopes key:
HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\SearchScopes

5.Launch IE No Add-on mode and verify:
Start -> All Programs -> Accessories -> System Tools -> Internet Explorer
(No Add-ons)

6.Boot into Safe Mode with Network and verify.

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