bmanda:We had the links to the forms on the quick launch to open the form directly in browser, but after the above mentioned changes done on the IE (added to local intranet zone), when clicked on the link I am getting a prompt to Save the form
This sounds to me as if the form template is being republished what is rather natural after changing its security access configuration. Have you tried to re-publish the form template from Infopath Designer 2010?
Anyway, please share here how it all ended up
Update:
Also note that for me the browser forms are opening in browser if launched from Mozilla Firefox and Infopath Filler if launched from Internet Explorer.
I've read somewhere om the internet how configure it for Internet Explorer but I am lazy to search. I am just using Mozilla Firefox if I need to launch browser forms (in browser)
Then, it is very comfortable since I do not need to attribute full trust and approve forms to launch them in Infopath Filler (from sharepoint server). This, administrator approval, is simply not available for me in Office 365 (Sharepoint Online)
Microsoft is shooting itself in the foot and I am missing to shoot me to my leg