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117.454: DoRegistryUpdates:UpdSpInstallFromInfSection Failed for
ProductInstall.GlobalRegistryChanges.Install error: 0x5
117.454: INF_REGISTRY Failed
117.454: DoInstallation:DoRegistryUpdates failed
117.532: Access is denied.
117.532: Internet Explorer 7 installation did not complete.

There is your problem: an incorrect permissions issue in your registry.
This sort of registry corruption can occur through use of certain
third-party security applications, or by other accidents/crashes causing
registry corruption.

Google for "Dial-a-fix", download the archive, run the self-extracting
archive, then run Dial-a-fix from the extracted contents. Click "Tools".
Select "Repair permissions", click "Go". It will take a long time.