I had the same problem, it's a problem with Windows XP SP2. Here is the e-mail they sent me on how to fix it:
In order to use the LSACD on the Web on a computer with XP Service Pack 2, you have to add “*.lsac.org” (no quotes, and that’s an asterisk (SHIFT-8) at the beginning) to your “Trusted Sites” list.
In IE, click on Tools, then Internet Options. Then choose the “Security” tab. Then click on the green check mark for Trusted Sites, and then click on the “Sites” button.
In the new window, uncheck the box at the bottom, then enter *.lsac.org in the field at the top and click the “Add” button.
Then click OK, then OK again. Close your browser window, then open it back up and log into Online Services again.
The applications should install and work properly from now on as long as you leave *.lsac.org on your Trusted Sites list.
Hope this helps