Just an update from my end. Uninstalling and reinstalling IE7 did not work, so we had to wipe the computer.

I hope this won't be the case for you all.
I think the reason this came up in the first place was that I accidentally started reinstalling windows when I wanted to install Office (I know, how do you mistake Windows for Office? I was really tired at the time). I stopped the reinstall when I realized what I did, but I think perhaps that's when the damage was done. -.- I would recommend NOT stopping an install process for Windows once you begin! Or installing software when you are out of it. -.-
For the record, I'm a female, but there isn't really any way you could have known that...