Check the settings at Tools | Options | Browser - File extensions to display in internal browser view
Here are my values as an example:
.html;.htm;.mht;.ico;.doc;.pdf
I'm not sure what the default values were. Including the appropiate extension should eliminate this problem.
Regarding the second part of your question: the webpage is Stored within UR, when you click to open - UR sends a copy out to the temp location for the external program (broswer) to load and render.
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