I just answer a related question before yours, so I will paste some of the
answer here:

1. Go to Tools > Options > Web tab and uncheck "Rely on VML..." and "Allow
PNG...". The "Rely on VML..." option has be removed from Pub 2007.

2. Do not use a Master page in a web publication.

3. Ungroup any design elements with hyperlinks, such as text boxes grouped
with images. The grouping tends to create combined images which kill the
links. This appears to be the problem with your links. If you try to left
click and drag to select any of the text, you will notice that you can't. It
has been converted to an image. I don't know which page you mean by page 3,
but if you are talking about
http://www.peacehaven.toucansurf.com/index_Page327.htm then if you look at
the text boxes they are probably not grouped with other design elements.
FWIW, I would suggest that you move away from using an underline for
emphasis in the text. That is a print formatting technique that confuses a
viewer on line. They will assume that since it is underlined, that it is a
link.

4. Along the same lines as #3, if you are using a bottom navbar that is
built with the navbar wizard in Publisher, you must ungroup that set of
links from the wizard. Otherwise it will be converted to an image and the
links won't work.

If you have other links that don't work, or other issues, please post back.

DavidF