Hi HomerJ,
The KB you have referred to is a Microsoft security upgrade for IE. It appears from the features that are installed and other reported issues from users, this is something that is blocking favorites and URL links from launching. The only fix that is really viable at the moment is to uninstall this KB. It is not something specific to ALM and is due to a security feature of IE that this KB installs. Others are reporting issues with IE and this is not something that HP can resolve as it is inherent in the IE browser security enhancement of this KB. The recommendation at this point is to uninstall until such time as the issue can be resolved by Microsoft.

Hope this helps,
Dan