I can't explain this so I thought I would pass it on to everyone.
I disabled my Windows Update from Automatic to manual when the warnings about installing IE7 came out a few weeks ago. This past weekend I manually checked for Windows updates and saw that they wanted me to install IE7. I selected that I did not want to install IE7 and installed the rest of the updates.
This morning my computer told me there were updates. Lo and behold, the windows setting for updates had mysteriously been changed to Automatic. I swear that I did not change that back to automatic. So I am either having a severe senior moment or Microsoft is messing with my settings behind my back. Either is possible. ;-)
So if you don't want to install IE7, do a manual check for updates and specify to hide the IE7 update to be safe. At least this way you won't accidently install IE7.