it's possible to this point....
users on an intranet can browse for and then open a excel, access, or word document from the IE, for editing and data entry.
Activating the application seperately I have never managed to achieve.
You can save the changes locally but then need to manually trigger the upload....
Atleast this is how I have had to do it in the past,.... I might be missing something though so if anyone has any brain waves....