Recently I was working on a SharePoint 2010 Foundation server and was receiving this pesky error every time I tried to open a file in SharePoint.
Evidently there is a default setting in Office 2010 that affects how files open on SharePoint. This is due to Protected view in Office 2010. To fix the problem, you will need to perform the following steps:
1. Run one of the Office 2010 application (e.g. Word 2010).
2. Click on File menu, and select Options.
3. In the “Options” dialog, select Trust Center in the left pane.
4. Click on Trust Center Settings in the right pane.
5. Select Protected View in the left pane of “Trust Center” dialog.
6. Disable any of all of the protected view options as below by unticking the check boxes:
- Enable Protected View for files that fail validation
- Enable Protected View for files originating from the Internet
- Enable Protected View for files located in potentially unsafe locations
- Enable Protected View for Outlook attachments

