Sharepoint 2007 Explorer view - right causes system crash


Running windows 2008 server std R2 with MOSS 2007. Clients running Win 7 enterprise with Office 2007.

When I try to open a document library in "explorer view" I have to wait for about 15 seconds before the explorer window pops up. I am able to see the content of the document library, but if I try to right click any of the files explorer.exe freezes completely (nothing works, task manager, ctr-alt del - nothing). Only option is to power off and restart.

I've tried multiple computers and all of them have the same behaviour. When I try the same thing against my MOSS 2010 Beta virtual server it all works perfectly on the same machines that crash against MOSS2007.

The MOSS 2007 web application is using SSL (which is also the case for my MOSS 2010 setup). I've also tried accessing via HTTP - same results.

This means that my MOSS 2007 server is misconfigured somehow?
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I don't have a MOSS 2010 setup to play with but I know I had a bad slow down issue when using Win7 RC and MOSS 2007 explorer view (webdav).  Solution that I am still using now with Win7 RTM and MOSS 2007 SP2 - switch off checkbox Automaticaly detect setting in IE8 / Tools / Internet Options / Connections / LAN settings / Automatic configuration.  

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