Unable to uninstall IE7 if Service Pack 2 is installed later on Windows Server 2003
In order to uninstall Internet Explorer 7 from this system, you can follow the steps below:
1. Uninstall Service Pack 2 for Windows Server 2003 and restart the computer.
2. Uninstall Internet Explorer 7.0 and restart the computer.
3. Reinstall Service Pack 2 for Windows Server 2003.
http://support.microsoft.com/default.aspx/kb/948093