I am getting "Access denied" javascript error for CuteEditor.htc file

on line 141
Ox3[Ox3[_0x1f28[0x11]]]=stylesheet[_0x1f28[0x2d]].item(stylesheet[_0x1f28[0x2d]][_0x1f28[0x11]]-0x1)
(see function AddRule)

I am developing on localhost.  Windows Server 2003, ver. 5.2, Service Pack 1
I have CuteEditor.Lic in bin directory and page without Editor works fine.

 

Please help.

    Aleks