Look at this link from a fellow wordpress blogger (daydream.wordpress.com)… I’ve tried it myself and there wasn’t any error.
Fact. IE7 Beta 2 Preview is available [link]
Yes, you can try all IE7 features without updating Windows XP / Internet Explorer 6.
1. Extract all the files from IE7B2P-WindowsXP-x86-enu.exe in one folder using WinRAR.
2. Delete: folder, update and files, ie4uinit.exe spuninst.exe spupdsvc.exe install.ins (I didn’t do this step but IE7 worked fine)
3. Create a new empty text document and rename it to iexplore.exe.local
4. Done! Run iexplore.exe
Have a nice browsing experience!
Tip: If you have any problems with this method, try IE7 Standalone Lunch Script