I install and uninstall a lot of software on my laptop in the course of my work. Sometimes, stuff happens, and I can't be sure what the problem might be. Standard advice from support in these case is "pave it" meaning uninstall and reinstall the app to see if that fixes the problem.
Recently, IE7 has been throwning the same Onfolio error message at me every 15 mins or so.
In case you need it, here are the instructions for uninstalling IE7 from Windows XP SP2 from kb 917964: