IE7 Hangs. Error msg: Cannot find 'http://anywebsite.com'...

Every time I try to open IE7 (32bit only, 64bit IE7 works fine apart from plugins don't work) I get the error message: "Cannot find 'http://anywebsite.com'. Make sure the path or Internet address are correct" and the program hangs.

Firefox works fine, as do all other internet connected programs so know the web addresses I try are working. It doesn't matter what site I set as my homepage, I get the same result. I tried opening internet options and resetting everything but that didn't work.

Any ideas would be much appreciated.

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Here's the error report:

Description
A problem caused this program to stop interacting with Windows.

Problem signature
Problem Event Name: AppHangB1
Application Name: iexplore.exe
Application Version: 7.0.6001.18000
Application Timestamp: 47918f11
Hang Signature: 5baa
Hang Type: 6144
OS Version: 6.0.6001.2.1.0.768.3
Locale ID: 2057
Additional Hang Signature 1: 7cdb9ef5a95bd34c13179c48f133bdff
Additional Hang Signature 2: 83ff
Additional Hang Signature 3: 2936fe456b17e7f9a61639e73489731a
Additional Hang Signature 4: 5baa
Additional Hang Signature 5: 7cdb9ef5a95bd34c13179c48f133bdff
Additional Hang Signature 6: 83ff
Additional Hang Signature 7: 2936fe456b17e7f9a61639e73489731a

Extra information about the problem
Bucket ID: 162243436