Hi MilesAhead,I have no guess what caused your issue. I tried to do something with group policy... keep IE from starting. But, a program that was installing launched it anyway. Apparently during install the privilege level is raised. So I resorted to a more definite approach. For that reason I lost interest in using Group Policy.. since I'm the only user.
A search on Microsoft Knownledge Base did not find any direct hits. I would try posting on MSDN. Also search the Windows "annoyances" sites.