After deploying our new Sharepoint 2010 intraweb, the users noticed an immediate problem:  They click to open a document in the document library and only have the option to Save.  Most users want to open the document directly.  There is a setting in the document library, but it was no help.

We discovered a global setting in central admin.  Go to application management and manage web application.  Highlight your web app (or main sharepoint site) and select general settings, general settings.    In here you will see an option for "Browser File Handling". You will  need to set it to permissive to allow the open option to appear.

Information from this <a href="http://social.msdn.microsoft.com/Forums/is/sharepoint2010general/thread/3028843a-0558-479e-a678-1d6270f2bb60">site</a>.