Yar, got SP3. I've rolled back and I'm using firefox. It really is an odd thing.are you running SP3?
Disable some of AVG's features like "resident" shield.
I'd wager heavily you have some software or service installed creating the problem, not IE8. You may be correct - and this is a rare oddity - but it's pretty unlikely. If it persists then revert to ie6 (i'd skip ie7 too) and use firefox... glen