lol, my input was from a programmer perspective, so don't let that sway you.
BTW: I fixed our issue. Turns out the user has to be logged in as an Admin to do the initial install and to adjust the security settings. The kicker is that an admin account can't just log in and do this, the user has to do it. As you can imagine, making everyone an admin (even on their own office PC) is not wise. So, when we roll out IE8, the users will have to have their account elevated to admin priveledges, do the necessary steps, and then revert back to a limited user. What a PITA! Good thing I'm not the LAN sys admin.
You would think that the browser would let a user make their own changes as long as it only affects their account. It's not like they're really installing a true app, just an ActiveX control. Bah, makes one want to switch to Linux!