IE7 and IIS FTP
I'm sure IE7 is great :) but if you have been playing with IE7 with IIS FTP, both don't click well together. If you have standard redirection folder structure configured in IIS FTP. E.g. username = ali and one of the folder name is ali. The user will get auto redirected to the 'ali' folder, when user 'ali' sign in. But this is not working with IE 7, you are not redirected to home folder but remain at ftp root folder.
This is not any IIS FTP setting you can tweak. It is purely client side application issue. Not sure if IE team going to fix this. But feel free to bug them here :)