Open vs Save Dialog box in Document Library of SharePoint 2010

I uploaded some files in Document Library of my SharePoint 2010 site. When users clicked them, instead of opening them in browser, it gave them Save Dialog Box to save it to the local disk.

This was a surprise for me because SharePoint 2007 (MOSS) has this feature. Microsoft SharePoint 2010 says that it has closed this option intentionally as there are security threats as there is a possibility that some unwanted code snippets are uploaded in the document.

To solve this problem

1. Go to Central Administration
2. Click Manage Web Applications
3. Select the web application for which you want to change the default behavior
4. Click General Settings from the top ribbon
5. Scroll down to Browse File Handling
6. Change the option from Strict to Permissive
7. Click OK

Now go to document library of the site again and test the new behavior.