I'd been avoiding Internet Explorer 8 for as long as possible, but finally had to bite the bullet when I ended up with a new laptop with Windows 7.
After a bit of cursing and some digging, I found out that its tied to DCOM, which meant running the DCOM Config tool, as follows:
1) Start, cmd, dcomcnfg
2) Select Component Services, then drill down to My Computer and right-click on it.
3) Select properties
4) Choose Default Properties
5) Change the Default Authentication Level to 'Connect'
6) Make sure the Impersonation level is set to 'Identify' (by default, it should be)
7) Hit ok, exit IE then reload.
That should take care of it. :)