I agree with aford10. Just in case you are not fimiliar with the Malwarebytes program, follow these directions to download malwarebytes from the legitimate site and perform aford10's suggestion
Restart your computer in 'Safe Mode with Networking Support'.
(To do this: Power on your computer and start tapping the F8 key at the top of your keyboard rapidly until the Windows Start Menu appears. Then select the Safe Mode with Networking Support menu option and press the Enter key)
Was the reinstall of IE successful? And you still get this? In normal windows, do you get an error box, saying IE can't open, or do you get the white browser page saying it can't connect to the webpage?
If IE7 doesn't launch when you attempt to open it, then you can try logging on as the Administrator and make sure your normal user account is a Power User or an Administrator account. If your account is already an administrative account, try creating a new profile with administrative rights and see if it works in the new profile.