This could be a problem after upgrading Acrobat Reader or running multiple versions of Acrobat. In my case,  I have Acrobat 7 and Acrobat Reader 9 installed on the same machine. 
I changed this key to 1 and it is fixed. 
HKCU\Software\Adobe\Adobe Acrobat\7.0\Originals\bBrowserIntegration 
http://kb2.adobe.com/cps/406/kb406119.html