Chances are the application developer has an old plugin which supports an older version of IE which isn't compatible with the current IE version you have installed on your computer. There are many web posts on this topic, some of which tell you to download an exe file and run it. This isn't correct. It is risky to download and install programs to fix server plugins which you have no control over.
There are other web posts(http://scn.sap.com/docs/DOC-28709) which tell you to put the browser in developer mode and select an IE compatibility mode. This doesn't work.
There are other web posts which tell you to modify http headers, http://scn.sap.com/thread/1918380.
This doesn't work.
There are web posts which tell you to install IE8 referencing msft website links which no longer exist.
Solution which worked for me is to downgrade your IE version to an earlier version until your application works. In my case I had to downgrade twice.
Fortunately MSFT makes it extremely easy to downgrade. Much easier than having to download .exe files and install them like in the old days.
Here is what the error message looks like in the IE 10 window:
First turn off Windows Update. IE is installed automatically. If you don't turn off the Windows update when you uninstall IE10, Windows will automatically install it again for you. Go to Control Panel>>System and Security>>Windows Update.
You should see something like the above screenshot. Turn off the update as shown below. You will get an angry red x warning symbol. Let's ignore that for now.
Remove the IE10 update. Go to Control Panel>>Programs and Featues. In the upper left hand window pane there is a link "View Installed Updates".
Below is the result after clicking on View Installed Updates. The updates are divided into sections. Scroll down to the Microsoft Windows section.
This is the Microsoft Windows section. Look for Internet Explorer 10, Select it with the mouse and it will turn grey.
Right click on the greyed out selection and click uninstall
Wait for the update to uninstall and for the restart message. Click Restart Now...
After restrarting go back to the control panel>>Programs and Features>>View Installed updates. Note now you have IE9. If your SAP application still doesn't work downgrade again to IE8.
My application worked after IE8 was installed. After you are finished, enable windows update again and the system will automatically update your system to IE10. No downloading of files!!