Bizarrely the following day it was working fine and has been ever since - no idea why!
I had the same problem, and 've just resolved it!
I've changed the url info provided in administration/site administration, so now it is exactly the same as provided in engine/settings.php - namely I removed www. - and now it's working with ie :)
Hope it will help you as well..
I don't at all trust IE :D...
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