I don't recall if this has been posted here or not already.  Either way here 
goes.
David Ferrin
http://www.microsoft.com/technet/updatemanagement/windowsupdate/ie7announcement.mspx

Internet Explorer 7 will be delivered through Automatic Updates - customers
should complete preparations by November 1
Published: July 26, 2006 | Updated: October 15, 2006

To help customers become more secure and up-to-date, Microsoft will
distribute Internet Explorer 7 as a high-priority update via Automatic
Updates and the Windows Update and Microsoft Update sites. Internet Explorer
7 will be available for users of genuine Windows XP SP2, Windows XP 64-bit
Edition, and Windows Server 2003 SP1.

This announcement provides an overview of the delivery process and options
available to IT Administrators to prevent delivery of Internet Explorer 7 to
their organization through Automatic Updates. Customers wishing to block the
delivery of Internet Explorer 7 into their organization should have blocking
measures complete by November 1. Distribution of Internet Explore 7 by
Automatic Updates will take several months to complete. Microsoft will
revise this announcement with more information in the future.

Automatic Updates Delivery Process

The automatic delivery process will notify users that an update is available
and allow users to choose whether to install Internet Explorer 7. The
process is described below and screenshots are included at the bottom of
this page.

Automatic Updates will only offer Internet Explorer 7 to users with local
administrator accounts. Automatic Updates will notify all such users
(including those with Automatic Updates configured to automatically download
and install updates) when Internet Explorer 7 has been downloaded and is
ready to install. The notification and installation process will not start
unless and until a user who is a local administrator logs on to the machine.
Users who are not local administrators will not be prompted to install the
update and will thus continue using Internet Explorer 6.

After clicking on the Automatic Updates notification balloon, users will see
a welcome screen summarizing key features of Internet Explorer 7 and
presenting three options - Install, Don't Install, and Ask Me Later.

Table with 2 columns and 3 rows
.

If a user selects "Install": The installation process will commence and
require Windows Genuine Advantage validation and a re-boot to complete.
Installation of Internet Explorer 7 will not override a user's default
browser choice and will transfer the user's previous homepage, favorites,
search settings and compatible toolbars. When the user launches Internet
Explorer 7, a first-run experience will be offered highlighting new features
and changes.
.

If a user selects "Don't Install": The notification process will not
re-prompt the user to install at a later time; however, any user who is a
local administrator will be able to install Internet Explorer 7 at any time
as an optional update from the Windows Update and Microsoft Update sites or
from the Microsoft Download Center.
.

If a user selects "Ask Me Later": The install process will not proceed and
Automatic Updates will start notifying the user that an update is available
using the same process (notification balloon and welcome screen) within
approximately 24 hours. table end

Internet Explorer 7 will replace Internet Explorer 6 on a user's machine.
However, users may roll back to Internet Explorer 6 by uninstalling Internet
Explorer 7 via the Windows Control Panel Add/Remove Programs utility.

Note If a user has installed Internet Explorer 7 and subsequently removes
it, Automatic Updates will re-offer Internet Explorer 7 to that machine
using the process above in order to bring it up to date. In this case, a
user need only select the "don't install" option at the welcome screen.
Internet Explorer 7 will no longer be presented by Automatic Updates. Top of
page Top of page

Options for Blocking Automatic Delivery

Microsoft recommends that organizations who are using Automatic Updates in
their environments and wish to prevent users from automatically receiving
Internet Explorer 7 take one or more of the following steps:

1.

Download and deploy the Internet Explorer 7 Blocker Toolkit. The
non-expiring Blocker Toolkit (available from the Microsoft Download Center
here) includes both a Group Policy template and a script that set a registry
key to prevent Automatic Updates and the Windows Update and Microsoft Update
sites from offering Internet Explorer 7 as a high-priority update. (Note:
The Blocker Toolkit will not prevent users who are local administrators from
manually installing Internet Explorer 7 from, for example, external media or
the Microsoft Download Center.)

2.

Deploy an update management solution that provides full control over the
updates deployed to computers in your network. Microsoft offers the free
Windows Server Update Services and the more advanced Systems Management
Server 2003 update management products. IT Administrators using an update
management solution should use the standard features of their product,
rather than the Blocker Toolkit, to control Internet Explorer 7
distribution.

3.

Prevent users from running as local administrators on their computers. Users
who are not local administrators will not be offered the update and can be
restricted from manually installing Internet Explorer 7 (or any other
application). (Click here for more information on user account management.)

4.

Instruct users to decline Internet Explorer 7 when Automatic Updates
notifies them that the update is available to install. If the above options
are not feasible for your organization, you can also instruct your users to
choose "Don't Install" when prompted by the Internet Explorer 7 welcome
screen. Users will not need to take special action to receive notification,
and all users will have the ability to decline installation.

--




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