.Net Security settings. Cant log from clients.

Good day,

I keep having this error when trying to connect to  my innovator server from  clients.

URL:  http://ip_address/innovatorserver

Aras Innovator client has failed to initialize.

Please, contact your system administrator to review your .NET security settings.

I have read and followed the .net client security documentation, I ran the  sdns.exe tool on my clients AND on the server but im still having the error message on all clients (even after clearing the cache/history/temp folders).

I can  log from the server no problem. I just have this message when connecting from clients.

Clients are Vista with IE7 and XP with IE7.   .Net framework 1.1 and 2.0 are used.

Anyone with a clue on why this is happenning?  Any help is much apreciated.  Thanks.