Welcome to BleepingComputer, Tux.
Looks like the system has Internet Explorer 7 installed, as that file is a support DLL for IE7 and it may have become corrupted. Since it is part of IE7, an XP disk will be no help.
First up, if you can run IE, I suggest trying a repair of IE7.
"Method to follow if you have Internet Explorer 7
If you have Internet Explorer 7, you can repair damaged files or missing registration information in Internet Explorer 7. To do this, follow these steps:
1. Start Internet Explorer 7.
2. On the Tools menu, click Internet Options.
3. On the Advanced tab, click Reset.
4. In the Reset Internet Explorer Settings dialog box, click Reset to confirm."http://support.microsoft.com/kb/318378
If this does not work for you, folk have reported successfully solving this error by transferring a copy of the file from another known good computer running IE7. This is simpler than reverting to IE6 and re-installing IE7.