...from: http://www.microsoft.com/technet/updatemanagement/windowsupdate/ ie7announcement.mspx

Automatic Update of Internet Explorer (IE) 7: Microsoft has announced that IE 7 will become part of the Automatic Update process on November 1, 2006. Anyone running a local administrator account on Windows XP SP2 (or Windows XP 64-bit or Windows Server 2003 SP1) will see a notification that will allow the user to choose to install IE7, to "Don't Inatall " IE7, or to "Ask me later". Non-administrator accounts are not presented with this update.

For more information and screenshots of this update, please consult the page at the above URL.

Wayne