When I try to click on link received in my outlook mail, it does not open the page. I have to copy and paste it on web browser. Can some body tell me how to configure so that I can open the link directly from my mail?

   Try going to the settings of your web browser and see if it is the default web browser.  
   If Internet Explorer is the browser that you use, go to the Tools menu and click on the Internet Options item.  This will open the Internet Options window.  Go to the Programs tab and look in the Default web browser section to see if it is the default web browser.  If not, you can click on the Make default button to make it so.
   Hopefully, that will solve your problem.  If not, let us know and we can go from there.

Is the URL truncated?  Perhhaps your default format for received email is 'plain text' . Sometimes with long URLs they get chopped and only the first part of the URL is a hot link.  To fix go to EDIT and Edit Message.....then FORMAT and change to HTML. That works for me.  

When my links do not work, Outlook will normally place an information box at the top of the screen warning me of the danger of 'turning on' links within the message. If I know the source of the email, I just click the bar to enable links and everything works fine.

My default browser is Firefox as I'm finding IE7 still has a few bugs that many of the sites absolutely will not work with yet.

Hope this helps!

Sue