Essentials 2007 requires changes to Update Management Settings to correctly distribute Feburary IE 7 update
Dustin Jones at the System Center Essentials Team Blog posted a heads up. http://blogs.technet.com/systemcenteressentials/archive/2008/01/28/internet-explorer-7-to-be-distributed-via-wsus-in-february.aspx
IE 7 will be distributed via WSUS in February as an update rollup package. If you chose the default settings when configuring Updating Management in Essentials 2007, this package will not automatically download and be distributed to computers in your organiziation. If you wish to have it distributed automatically, check out this KB article. The instructions are for WSUS, but will also work for Essentials 2007 if you change the Update Management settings to include update rollup packages.
Windows Internet Explorer 7 is to be distributed via WSUS February 12, 2008; May require administrator action to manage the rollout