CHECK THESE SETTINGS:
With IE 7 open
On the menu bar, click view
On the drop down, click web privacy policy
In the Privacy Report dialog, click settings
In the Internet Properties windows, click the Security tab.
On the Security Tab, click custom level
On the Security Settings -- Internet Zone window, scroll the window down to the
buttons for Display video animation....
Change the setting from Disable to Enable.
Then click OK which closes the window. Close all the other windows as well.
That should fix the problem. Now we are talking about Microsoft so......
Let me know how it all turns out.