Paste from IE to Office but no automatic Hyperlink

When I was using Vista and IE7, I could copy a URL or email address, paste into Outlook or an Office document and automatically it would be hyperlinked (i.e. blue and underlined).

When I upgraded to W7 64 bit and reloaded my Office Professional 2007 software, this automatic Hyperlink functionality has ceased (on my screens at least). Curiously, if I paste into Outlook the URL/email is not automatically Hyperlinked but when I send the email to another one of my email accounts, when I open up that email, the URL/email is blue, underlined and Hyperlinked.....

And if I type a URL or email address in Office products, they don't automatically Hyperlink like they used to.....

Any ideas how I can get the automatic Hyperlinking to work in W7/IE9/Office?

Many thanks

That way works for me with IE8.

Thank you number 1 - That was a quick reply
Thank you number 2 - You have sorted my problem!

I do not have Office 2007 right now - so I'm doing this from memory:
Open Word
Click on the orb (circle/globe thing) in the upper left
A rectangle should appear
Near the bottom of that rectangle is "Word Options" or something like that.
Once you click on "Word Options" - a two pane window appears.
Click on Proofing in the left pane
In the right pane there should be a button that says Autocorrect Options - click it
A tabbed window should appear - select the tab named AutoFormat as you type
Put a check by "Internet and network paths with hyperlinks"
"OK" your way out of all of that and test.

Edit - doh - too late
yes, a reset/repair should also put that check in the location that I mentioned.