I uninstalled Perl and reinstalled it. Same behaviour. Perl works from the command prompt.
 
Here's the error when I click on the link:  
"you have chosen to download a file from this location ..."
 
The virtual directory where the perl script resides has:
script source access - OFF
read - ON
write - OFF
Directory browsing - OFF
log access - ON
index this resource - ON
 
IIS seems to be configured to think a .pl is a downloadable file. This even though the "Home Directory - Configuration - Application Configuration clearly has:
Extention - .pl
Executable path - e:\perl\bin\perl.exe -T %s %s
Verbs - (all)
 
One can actually download the source if one says "save" when the download window is presented. If one choses "run from this location" a DOS box opens, shows the output of the execution and then closes.

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