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First, download Internet Explorer 7 Beta 2.

Then use WinRar to extract the files from the setup to a folder, for example C:\Program Files\Internet Explorer 7.

Create a new file named ie7.bat in that folder, and copy the code below (courtesy of Jon Galloway):

@ECHO OFF
TITLE IE7 Launcher 1.4

ECHO IE7 STANDALONE LAUNCHER 1.4
ECHO Updated for IE7 Beta 2 Preview
ECHO.
ECHO Do not close this window or it will not clean up after itself properly.
ECHO You can pass a URL into this batch file, like this:
ECHO ie7.bat www.microsoft.com
ECHO.
ECHO More info here: http://weblogs.asp.net/jgalloway/archive/2005/12/28/434132.aspx
ECHO.
ECHO When you close IE7, this will remove the registry key and shut itself down.
ECHO.
ECHO Setting up IE7 for standalone mode…
PUSHD %~dp0

ECHO Removing IE7 registry key and set the version vector to “7.0000″.
> %TEMP%.\IE7Fix.reg ECHO REGEDIT4
>>%TEMP%.\IE7Fix.reg ECHO.
>>%TEMP%.\IE7Fix.reg ECHO [-HKEY_CLASSES_ROOT\CLSID\{C90250F3-4D7D-4991-9B69-A5C5BC1C2AE6}]
>>%TEMP%.\IE7Fix.reg ECHO [-HKEY_CLASSES_ROOT\Interface\{000214E5-0000-0000-C000-000000000046}]
>>%TEMP%.\IE7Fix.reg ECHO [HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Internet Explorer\Version Vector]
>>%TEMP%.\IE7Fix.reg ECHO “IE”=”7.0000″
>>%TEMP%.\IE7Fix.reg ECHO.
:: Merge the REG file to delete the IE7 standalone entry
REGEDIT /S %TEMP%.\IE7Fix.reg

REN SHLWAPI.DLL SHLWAPI.DLL.BAK
TYPE NUL > IEXPLORE.exe.local
ECHO Running IE7…
iexplore.exe “%1″

:: Merge the REG file to delete the IE7 standalone entry
REGEDIT /S %TEMP%.\IE7Fix.reg
:: Delete the temporary REG file
DEL %TEMP%.\IE7Fix.reg

ECHO Removing IE7 standalone files…
REN SHLWAPI.DLL.BAK SHLWAPI.DLL
DEL IEXPLORE.exe.local

:: Set the old version vector “6.0000″.
> %TEMP%.\IE7Fix.reg ECHO REGEDIT4
>>%TEMP%.\IE7Fix.reg ECHO.
>>%TEMP%.\IE7Fix.reg ECHO [HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Internet Explorer\Version Vector]
>>%TEMP%.\IE7Fix.reg ECHO “IE”=”6.0000″
>>%TEMP%.\IE7Fix.reg ECHO.
REGEDIT /S %TEMP%.\IE7Fix.reg
DEL %TEMP%.\IE7Fix.reg

POPD
ECHO Complete, closing…

Create a shortcut on the desktop to ie7.bat and run Internet Explorer 7 from that shortcut. Don’t close the DOS console while running IE7, it will automatically close when you exit the browser.

Now you have a standalone Internet Explorer 7 that runs along with Internet Explorer 6.

Known problems: while running IE7, if you type an URL in the address bar of IE6, the page will open in a new window.