Its a bit of a long shot, I'm just wondering if Picasa is re-associating files. Try going to Windows Explorer and in file options check to make sure html files are associated to open with IE and not Picasa.
I'm not well up on Windows 2000, so I'm doing this from memory, if I'm wrong someone will correct me:
Double-click the My Computer icon. This will open a folder that shows all of the drives located on your system.
From the Tools menu, select Folder Options.
In the window that opens, click the File Types tab.
If I remember correctly there is a window that shows all the files currently on the computer and by clicking on each one, somewhere in the window it should show the application that will open the particular file, you are looking for a file called html, it should be associated with IE, if it is then I'm on the wrong track, if you let us know.
Valvegrid Thanks, checked that and html is associated with IE. It was worth a try. Hi H I can't understand it myself. IE opens no problems until I've been using Picasa then it reverts to "Never dial a connection". I do like the program so I think I will just have to keep ticking "Always use my default connection" after use.
I'm not going to green tick yet, just incase someone comes up with a solution.
Another long shot, try a repair of IE, you can do that by going to add remove programs and when you try and remove IE you'll be given three options, pick the one to repair IE, just in case Picasa has corrupted it.