Did not take many minutes for the Flea farmers to get in on IE 7 did it, so much for Bills all singing and dancing new explorer.
Sadly the writters of this problem malware have ramped up their efforts before the public can protect there systems against issues that have yet to become common knowledge in the hope of getting there particular software onto your computer, remembering it takes only one idiot to respond to it to make it all worth the effort as far as there tiny minds go and a lot, in fact a very large amount of money is involved here.
The question of Pop ups or Pester ware with IE 7 is an ongoing issue that had been all but overcome with IE 6 and with this newer edition it will all have to be done again, and if you want to know exactly how deep it goes read through this little lot.
http://forums.spybot.info/showthread.php?t=9951
The owner eventually established a clean system after a lot of messing around but for an infected system it has to be done or they win and you loose.
Spybot and adaware will in the course of time catch up and put a stop to this problem I am certain but in the mean time the advice given on the posts in that link will allow you to clean your system, and take a hint, once done, either go back to IE 6 if you must or go with Firefox which while not totally immune to this sort of thing is far better suited to cope with it, is fast a generally safer to use.