Vista - IE7 and Property Sheet

I have an odd one that I cannot seem to fix. When closing IE7 then
clicking on any other shortcut on the desktop it brings up that shortcuts
property sheet instead of opening that application. You can right click,
choose open and that will work but not the way I want to do it.

If after closing IE7 you bring up the taskmanager windows you can see two
instances of dllhost.exe running. As soon as those close ( by themselves
) the shortcuts again work as expected. I am not saying that the
dllhost.exe is what it causing this but it sure seems strange that the
shortcuts work again after they close.

Anyone seen anything like this or know of a fix?

Jim