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edit locally giving error "Operation Failed"

while edit document locally in KM trough the command "edit locally". After clicking on "edit locally"a digitalized signed applet pops up with run and cancel button.(here applet is being set instead of Active x).I clicked cancelled. It shows the error "operation failed".Doesn't allow me even next time. Showing

How to solve the problems that even though I click the cancel, the next time same applet should popped up

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