Could not open Office document from SharePoint document library

Office is not able to open documents added to sharepoint 2010 document library. However on saving locally, the document opens.

Protected View is a new security feature in Microsoft Office 2010 to enhance protection of computer against risky Outlook email attachments, files originated from or downloaded via Internet, files that fail validation or files that are located in potentially unsafe locations. The only problem is that Protected View will remove support for legacy document formats, and cause documents and files deemed unsafe to be opened in read-only mode.

This worked for me:

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"