A little update on things.
Well...I tried to make progress in getting IE5 16-bit installed and had to do the hard way.
I did a XXCOPY of IE directory off on Drive C of a Windows 3.1 installation under DOSBox (mapped as drive I) onto drive E of the OS/2 installation (mapped as drive Q), then I copied the DLLs dated 6 February 1999 that are required to run IE5 16-bit and the REGDATA directory.
Internet Explorer 5 would start, however I'm get a blank gray window instead of the webpage that I'm visiting:
http://img835.imageshack.us/img835/6001/ie5blank.pngAre there any other hacks to get IE5 properly installed?
(If you found any hacks, please let me know.)
Update 1: I had to do a import of a registry file from a Win 3.1 installation and I'm still attempting to get IE5 to work right even though most of the features are partially working. I did a backup of the REG16X2.DAT file as REG16X2.IE5 incase I screw things up.
Going into the Control Panel, there is a Internet Properties icon and most of the features work.
However, I've run into numerous problems:
1. In the Security settings, the page is blank and clicking on OK or one of the settings crashes the Control Panel applet:
http://img151.imageshack.us/img151/8558/ie5security.png2. In the Connections settings, I get a warning that I've selected to use the dialer but do not have a modem installed. It tells me to either switch to LAN or install a modem by running the Connection Wizard and click on the Your local area network or another dialer radio button has no effect on it as well:
http://img534.imageshack.us/img534/1973/ie5connections.pngIn short, I don't have a modem at all.
3. In the Programs tab, the only thing that's not working is the File Types; clicking on the button has no effect:
http://img806.imageshack.us/img806/2769/ie5advanced.png4. Lastly, in the Advanced Tab, everything is blank. Simply clicking on Restore Defaults or anywhere around the tab crashes the Control Panel.
In the end, I'm guessing that it turns out that either some of the DLLs that make Internet Explorer 5 work are not properly registered or the registry keys aren't working.

I don't know if it's going to work, but I will try to look at the registry settings via REGEDT16 to see what could be the problem as I fear that getting Internet Explorer 5 (16-bit) to work under Win-OS/2 is starting to take up too much of my time and that it makes things more buggy or error prone.
Update 2: I have literally given up on using Internet Explorer 5 on Win-OS/2 as it takes too much time to get it to work properly without having to causing internet connection related problems.
From what I heard is that Internet Explorer 3.03 (16-bit) is the last working version of the product that works in a Win-OS/2 environment as Internet Explorer 4 and Internet Explorer 5 appears to be broken and even incompatible with Win-OS/2. Additionally, IE4 and IE5 (16-bit) breaks Win-OS/2 internet connection even if the Win16-based Ping service appears to be working.
I'm guessing that I'm gonna have to start a new thread on how to get internet connection in a Win-OS/2 environment fully restored again.
Update 3: Had to delete WINSOCK.DLL from the \OS2\MDOS\WINOS2\SYSTEM directory and the internet under Win-OS2 is working again. Until there are workarounds on how to install Internet Explorer 5, I'm stuck with IE 3.03.