I received this question several times from several colleagues who use IE Developer toolbar for skinning SharePoint sites :
“I installed the IE Developer Toolbar but All the menus are in gray and it’s not functioning at all.”
Well, It’s easy :
1) Tools –> Internet options –> Security –> Local Intranet –> Custom Level –> Run ActiveX Control or PlugIn (Administrator Approved)
2)Tools –> Internet Options –> Programs –> Manage add-ons –> IE Developer Toolbar BHO –> Enable
3)Tools –> Internet Options –> Advanced –> Enable third party browser-extensions 4)Restart IE

Happy skinning 😀