internet explorer 9 - Running jquery in IE9 in an xml file in Local Intranet Zone -

i have xml file renders html using xslt. nothing special here , works in ie7 , ie8 fine. however, in ie9 not render jquery part of file on "local intranet" zone

the file runs http://localhost/xml/index.xml

1. checked settings under custom in "local intranet" , of them enabled
2. made sure runs on ie8 on same browser using developer tool.

is there missing here?

i've had similar problem , managed work in compatability mode.