Problem:

When clicking a link in Internet Explorer with the .log extension the browser will prompt you to download the file rather than display the contents within the web browser itself, or the file will open but it will be in Notepad instead of Internet Explorer. The user wanted to view .log files directly in the Internet Explorer browser.


Solution:

This issue had to be solved by doing the following two things:

Set windows to open .log files using Internet Explorer by default
  1. Open My Computer
  2. Click the Tools menu and select Folder Options
  3. Choose the File Types tab
  4. Scroll down the list of file types in the Registered File Types... menu until you see the LOG file type
  5. Select the LOG file type and choose Change
  6. Select Internet Explorer from the list and click OK

The problem may be solved at this point but for some applications that work inside of Internet Explorer an additional registry edit must be made.

  1. open regedit
  2. locate the key HKEY_CLASSES_ROOT\.log
  3. Add a new String Value with
    Name=Content Type
    Data=text/plain

This will have to be done on all PCs that are used to view the log files.

Reference:
http://lists.urbancode.com/pipermail/anthill/2003-January/000908.html