IE on Win95 Security problem

Not sure if this is best forum for this, but here goes. Have a largish network of mostly 95 clients and NT 4.0 servers. Intranet development Dept. has hit snag because the security settings in IE are greyed out and inaccessible and so cannot be changed to run intranet ap. At first thought was due to security policies on Network, but we believe we have eliminated that as a possibility. We can’t figure out why these IE settings are disabled or how to re-enable. I believe the IE is v. 4.1 -any suggestions?