did you clean you IE cache with
ATF Cleaner and did you use
FIxIE as suggested?
Generally is sufficient to right click the yellow bar to allow activeX to be installed, twice if necessary.
However if you want to check if your computer is Windows 7 capable
download and install
Windows 7 upgrade advisor Download details: Windows 7 Upgrade Advisor
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Another way to solve is uninstall IE 8, reboot, download a fresh copy of IE 8 and reinstall it
P.S if you want back your google bookmarks reinstall google toolbar