I had problems similar to what you are talking about once also. It's another reason why I don't like IE AT ALL and only use it when I have to.
The only other thing I might suggest is to do a restore going back like two weeks or to a date when you know that the system could see IE7. That should get you going again.
"Sort of" is such a harmless thing to say. "Sort of". It's just a filler. "Sort of" - It doesn't really mean anything. But after certain things, "sort of" means everything. Like after "I love you" or "You're going to live" or "It's a boy".