Small detail that Tom pointed out; I forgot to add it to Simple Header:
- Make sure all templates and template modules (Header, Simple Header, etc.) use xmlns:fb="http://www.facebook.com/2008/fbml" in the opening <HTML> tag. This makes IE happy.
Now the Connect with Facebook image shows up, and I can login and post a comment with Facebook with IE 7. However I see some strange things (who would have thought). Firstly, Facebook profile pictures are not being brought in.

Even worse is trying to Sing Out of Facebook. Something is not correct here. Hope I find an answer soon. When you click Sing Out, you see this ugly dialog box, Operation aborted.

Once you click OK, you see the normal Facebook dialog that says you have been logged out of both sites. But then Internet Explorer shows you this, which is the correct URL, though IE tells me the page is unavailable if I delete
#_logout from the URL. It is, in a new IE tab, it pulls up just fine. The tab I hit Log Out will not display the site at all, not even the root of the site.


If I go to the new tab I made, I am in fact logged out of Facebook and can login again if I wish. This reproduces the same issue making that tab in IE unusable. So this is an issue I can reproduce. Like I said, hope to get an answer to this one soon.
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