Design Studio from launchpad works does not work on IE

We have installed BO 4.0 SP6 along with the Design studio server add on.

The design studio apps work fine:

1. When we try to execute in local mode

2. When we try to execute in BI mode from the application

3. Using Open Document link copied from launchpad

4. SAP Mobile app

What does not work is when we right click the app in launchpad and click on "View". A new IE window opens up and is blank. Now when I tried with Firefox, a new tab opens up with the Launchpad and the application does get loaded. Any ideas?

Has anybody tried the "View" button in the context menu of the application from Launch Pad?

Thanks for your help.