Congrats on a sensational job, 2aCD! Works perfectly in VistaPE v.11, including IE7's handling of both local HTML pages and client side script processing. The latter wasn't working well in the previous version. In fact, whether intentionally or otherwise, you've also solved a problem in the MMC 'extended' display of Windows services.
Making the Explorer shell script self-contained with its own 'policy' settings and IE7 a separate dependent script makes good logical sense, I think. At least for me, its much easier to follow and choose amongst the various available options that way. And I'm very happy to be able to get rid of a couple of my own little ad hoc addons.
If you haven't already done so, I suggest getting in touch with Nightman about coordinating with his work on VistaPE v.12 beta development. My own very limited testing suggests that there may be a few wrinkles to iron out at this very early stage.