OVERTALK,
I took:
[DEFAULT]
BASEURL=http://www.iasa.com.au/folders/menu/index.html
[InternetShortcut]
URL=http://www.iasa.com.au/folders/menu/index.html
Modified=4050A1AA9CD0C3010B
Pasted it into notepad, then saved it as test.url and IE loaded the website without a problem.
I am wondering if your Antivirus or the settings on your firewall could be blocking IE from opening the website.
Take Care,
Richard