You may want to visit these two threads.
I have WinXP SP2 and am having no problems with IE7. However, as evidenced by the posts in the threads I mentioned above, it is not bug free yet.
Hope this helps.
I just installed IE7.The Windows Live Toolbar I downloaded will not install? I cannot view my temporary internet files either. I like to occasionaly use some of them in my photo projects. I get a BSplayer file index when I try to view the temporary files and the folder is labled IE5 ! I'm confused ! Any help to correct this is greatly appreciated. I have Windows XP Home Edition with sp2 installed. Thanks. oh yes, the Google and yahoo toolbars installed just fine.