Issue: When you try open a aspx/html/pdf or other such files from your SharePoint Foundation 2010 site; you are prompted for downloading the file rather than opening the file in Browser.

Resolution:

This is an enhanced feature in SharePoint Foundation 2010 and IE8.  In the previous versions of SharePoint; you could open the files directly.  By default; the browser file handling option is set to strict in Central Administration

To change this setting; you need to follow the steps given below.  Please note that the steps needs to be performed in the Central Administration; which is available in your SharePoint Server.

1.    Goto Web Application and Select the WebApplication under which the Ste Collection and files are located.

2.   Click on General Settings from the top “Ribbon”.

3.   Locate the section “Browser File Handling”

4.   Change it to Permissive.