Policy settings prevent opening Internet forms with managed code

I’m preparing a demo for a conference that needs to of course run disconnected on a local machine.  We built a virtual and set it up under a workgroup using all local accounts for our ASP.NET web services, SharePoint, BizTalk Server, etc.  When opening the InfoPath forms we would receive the error “Policy settings prevent opening Internet forms with managed code”.  To fix this for the demo I went into Internet Settings and put localhost in the intranet zone.
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