Seems like you're not the only one with this problem. Sorry, but it seems to be IE7 problem. If you can upgrade to IE8, I recommend it because I haven't had problem with it.
http://answers.microsoft.com/en-us/ie/forum/ie8-windows_other/error-internet-explorer-cannot-open-the-internet/0a8426d6-0dfc-4735-b894-a36ddfe8bca3
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