Unfortunately the uninstall-reinstall didn't work....
One thing though, don't know if this has much relevance....
I also used to use IE Privacy Keeper with IE6, however have stopped using it since upgrading to IE7, as a number of things that should used to be cleared were not being done with the new version of IE.
The main one of thing not being done was Form Data, although IE Privacy Keeper thought it had cleared everything, the info was still there!!
One of IE7's features is a new browsing history delete section within Tools>General.
Is it possible that the folder or area Erase is looking for when scanning for the Recent Docs has a different name/location in IE7 to what Erase expects (under older IE versions) and is crashing as a result?
The following link explains a bit about the new IE7 if it helps
Whatever help/info I can provide to help identify the issue, please let me know....