3.53 works with ie7 PROVIDED you use the 98/ME install for the patch, as opposed to the XP one.. 3.54 works with it too.. if you use a hosts file & peer guardian...
This is getting way more common KM when are we going to see a patch that's IE7 compatible without messing around?
I really prefer NOT recommending Pie patch, but for IE7 users who want 3.54 I'm finding myself increasingly doing so.