@Björn, yes it's an idea, but the thing is I got IE7 working by using the standalone setup and install it over the WSUS install, after that it works.

@pvds, you have to update the GPO with an updated inetres.adm. Ie, open the GPO with GPMC on a machine that has IE7 installed.

Also, IE7 sets proxy settings per machine instead of per user:
http://support.microsoft.com/kb/555850


Anyhow, I've opened up a MS PSS case on this. So far nothing since the guy helping me is a real newbie... (you should see the dialogue.. it's scaring). Just waiting for next level support... I think it might have something to do with the WGA. \:\/

Funny thing is, http browsing through Windows Explorer works, lol ;\)
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