Since no one seems to know, I think I have found a solution and I want to share 
with everyone just in case someone is having this problem.

In Internet Explorer 7, goto Internet Options->Privacy->Advanced.

Block First and Third Party cookies, however, enable session cookies. These 
cookies will stay in memory as long as the IE process is open. Cookies are 
never written to disk. The cookie space seemed, in my tests, separate from 
other IE processes are are running. For example, if I logged in to yahoo mail 
or something with one IE window, and started up another IE instance, the 2nd 
instance is unaware that I am logged in with the first instance. 

Hope that helps other people.
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