It looks like the instructions I linked to in my first post also work if you use WinZip which is nice – saves another download 🙂
However, the pop-up blocker behaves slightly strangely – I can’t seem to turn it off for this site – so the WordPress admin stuff doesn’t work properly. I’m not sure if this is a consequence of running it “locally” or if it’s a “feature” of the current Beta – but it’s enough to make me think twice about loading IE7 over the top of my current build.
One other thing – make sure that your SP2 install has completed before you try to run IE7 – or you get some very weird results!!