How is the .NET page embedding the view? Is it in an iframe? Can you view the source and locate the link to the embedded view? What would happen if you changed the link to another URL (like google.com) -- would it still show the error icon?
+1 on Joshua's comments - we need a bit more information.
Thanks Joshua and Russel for the reply.
We resolved this issue.What we found is that IE is blocking some of the ActiveX control settings.I made the security level of the IE to low and enabled all the ActiveX controls and now IE is behaving same as chrome.