After “updating” to IE7, shared drives are treated as internet zone – prompting you to confirm every single time you try to copy a file.

This knowledge-base article describes the problem, however the “fix” does not work.

This registry hack appeared to work:

[HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Internet Settings\ZoneMap\Domains\YOUR_SERVER]
"file"=dword:00000001

Then obviously reboot after update the registry, because Winblows can’t seem to get anything done without a reboot.