Last week I installed IE7. Didn't have any problems with it up until today. I had to make some changes to one of my web applications through Web Application Administration Tool (VS 2005 menu: Website -> ASP.NET Configuration) so, I launched Administration website but none of the links worked. After being confused for a couple of minutes I went on googling and it apperars that I'm not the only one who have this problem. To fix it you have to add localhost to the list of trusted sites. Here is how you do it:

• Open up IE7 window
• Go Tools -> Internet Options -> Security tab
• Click on "Trusted sites" icon in the list, then click Sites button
• In "Trusted sites" dialog UnCheck "Require server verification (https:) for all sites in this zone
• Type http://localhost in the textbox and click Add button
• Click Close and then Ok in the "Internet Options" dialogs

Now try Web Application Administration Tool. All links should work like they did in IE6.