The problem you are having is caused with a error in API the API function activates the appropriate activation contexts "ie" when you click a button have you recently installed any xp themes that change the look of xp to vista or some other theme? This can corrupt the Activation Context API

All,

I too was having this issue, turned out when the Microsoft updates ran, it installed IE8 but kept IE7. Removed all updates, rebooted, re ran updates did not include IE. IE opened with no errors, bounced the box ran IE8 upgrade, and vala no mo