Active Desktop recovery fix – desktop.htt pretty much controls the size and position of your desktop. IE7 is a little bit incompatible with the old profile you may have had already. To fix it go Start >Run, type and enter regedit
Go to this key:
HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Desktop\SafeMode\Components
Change the value of DeskHtmlVersion to zero instead of decimal 272.
Happens after reboot with IE 7.0 installed.