When ever I click a file (sit, hqx, zip, whatever) it asks me what to do with it, even if I uncheck the 'ask always' bit. Also, I've tried switching it off in the advanced window, which stays unchecked, but still doesn't fix the problem.

This functionality has always, sadly, been badly broken on Mac, because it seems nobody at Mozilla has ever actually properly architected the function on our platform. There are already several bugs open on this topic.

Reporter, can you still reproduce this problem under 0.9.6?

Yes, same problem as described...

*** This bug has been marked as a duplicate of 88330 ***

mass verification of duplicate bugs: to find all bugspam pertaining to this, set your search string to "DuplicateBugsBelongInZahadum". if you think this particular bug is *not* a duplicate, please provide a compelling reason, as well as check a recent *trunk* build (on the appropriate platform[s]), before reopening.