And the military has said the same thing, that we cannot install IE7 until the problems are worked out, but even with that said they know that eventually they will have to go to it, but with modifications.
IE7 was really designed to work with Vista's new security controls, which is why you are getting locked out of certain folders. However, that can all be changed with the security properties.
Anyway, there isn't a whole lot we can do except to find ways to adjust and tweak to fix it the way we want or learn to live with it.