Since they're both trying to be merged with each other...
IE7 is a completely seperate program again - MS have finally realised it's not cool to have security holes in your web browser that directly affect your desktop as well - in Vista, IE and Windows Explorer are back to being two completely seperate environments.
For those asking about the navbar, no it is not movable. It is designed to mimick Vista's interface.
a few weeks I suspect it will be automatically downloaded as a critical update through Windows updates.
You are 100% correct. Which will make our office environment interesting for the next few weeks - around 10 computers sharing a dial up account ;]