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Not getting the Prompt in SP 2010 for "Read Only or Check Out and Edit" anymore.

Hi,

     I am not getting the prompt for Read Only/edit any more, I am only able to"Open Save, cancel" when I open the file it opens in the native client in read only mode.

 Here are the specs.

Sharepoint 2010 Standard on windows 2008 64 bit. Ms Office 2007

Changes made 

Sharepoint server publishing Infrastructure Activated. Changed the permissions to permissive to open the pdf files in the broswer. Installed/Uninstalled Ms Office 2010 beta.


Any help or guidance is highly appreciated.
I had highly mentioned (edit documents/ single document only) etc to my users and now I am in a pickle.



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