
Solved the problem by checking Windows 7 Properties on the tour.xml file. After saving the tour.xml in the editor, the properties have to be manually changed each time.
The procedure is to (1) right click on tour.xml file, (2) select "properties", (3) select the "general" tab, (4) under the security section, the "unblock" button must be pressed, (5) select "apply" or "ok", and (6) re-launch tour.html.
This fixed the problem and I can now add hot spots and execute viewer without any problem. I have attached a screen shot of the properties pop-up window for reference.