Many ppl are facing issues while viewing Workspace in IE 7.0. Expandable menus( Like Navigation, File) of Workspace don't work properly in IE 7.0.
Here is the solution :
Go to internet options > Security > (Internet or Local Internet, depending on how you are accessing workspace) > Custom Level > "Allow
scriptinitiated windows without size or position constraints" > Make sure it is enabled.
Restart your browser, log in again