Looks like the settings are a bit messed up :P

Have you tried reinstalling Opera?

Also you can try clicking on "Tools"->"Preferences"->"Advanced"->"Content" and
configure it the same way as follows:



You can also open your Opera config file (opera6.ini) located in:
C:\Documents and Settings\YOURUSERNAME\Application Data\Opera\Opera\profile

And compare [User Prefs] section to this one:

[User Prefs]
Opera Directory=C:\Documents and Settings\YOURUSERNAME\Application Data\Opera\Opera\profile
Windows Storage File=C:\Documents and Settings\YOURUSERNAME\Application Data\Opera\Opera\profile\opera.win
Direct History File=C:\Documents and Settings\YOURUSERNAME\Application Data\Opera\Opera\profile\opera.dir
Global History File=C:\Documents and Settings\YOURUSERNAME\Application Data\Opera\Opera\profile\global.dat
Viewer History File=C:\Documents and Settings\YOURUSERNAME\Application Data\Opera\Opera\profile\viewers.dat
Hot List File Ver2=C:\Documents and Settings\YOURUSERNAME\Application Data\Opera\Opera\profile\opera6.adr
Plugin Path=C:\Program Files\Opera\Program\Plugins;C:\Program Files\Mozilla Firefox\Plugins
Button Set=C:\Program Files\Opera\skin\standard_skin.zip
Browser JavaScript=2
Browser JavaScript Switched=851
Show Startup Dialog=0
Home URL=http://www.digg.com
Ignore Target=0
Target Destination=0
Ignore Unrequested Popups=1
Number Of Hits=0
Search Type=0
Menu Configuration=C:\Program Files\Opera\defaults\standard_menu.ini
Keyboard Configuration=C:\Program Files\Opera\defaults\standard_keyboard.ini
Mouse Configuration=C:\Program Files\Opera\defaults\standard_mouse.ini
Voice Configuration=C:\Program Files\Opera\defaults\standard_voice.ini
Minimum Font Size=6
Window Cycle Type=0
First Update Delay=1000
MaximizeNewWindowsWhenAppropriate=1
Download Directory=C:\Documents and Settings\YOURUSERNAME\My Documents\
Run Telnet In Terminal=0
Run TN3270 In Terminal=0
Max Direct History Lines=0
Max Global History Lines=0
Automatic RAM Cache=1
Enable Referrer=1
Enable Cookies=3
Ask For Cookie Confirmation=0
Accept Cookies Session Only=0
Do Not Show Cookie Path Errors=2
Do Not Show Cookie Domain Errors=1
SDI=1
Showed Gesture Info=1
Enable Gesture=0
Show Default Browser Dialog=0
Open Page Next To Current=0
Last Used Auto Window Timeout=60
Newest Seen Version=8.51
Startup Type=4
Toolbar Configuration=C:\Documents and Settings\YOURUSERNAME\Application Data\Opera\Opera\profile\toolbar\standard_toolbar (1).ini
StatusBar Alignment=4
Hotlist Alignment=0
Transfers Added On Top=1
Check For New Opera=1136964559


NOTE: Make sure that Opera is closed before you edit/save the opera6.ini!