Red X's through most images on webpages

All non admin users are getting red X's through images on websites.  Not all images but most images...  For example the Google website image.  When I logon as administrator I can view all website images.  We are running Windows XP SP3 with IE 7.0 due to application compatibility issues(cannot upgrade only go down to 6.0).  The same behavior occurs with both IE 6 and IE 7.  If I upgrade to IE 8 all websites appear normal, but cannot do this as a valid solution.  

I have tried a bunch of obvious things to remedy this such as:
Verifying Show Pictures is checked in IE Advanced Properties Tab
Restored Advanced settings in IE Advanced Properties Tab
Reset Internet Explorer settings in IE Advanced Properties Tab
Deleted temporary internet files
Enabled the Auto Select Encoding option
Verified the encoding option was set to the correct language
Uninstalled all traces of IE then reinstalled
When I make the user a local admin the websites appear fine

What can I be missing that would cause website images to appear as red x placeholders?  Possibly a local group policy???  All virus scans were completed in the past(to the best of my knowledge) and possibly after the virus removal this is the resulting issue.  Thanks in advance to anyone who can help me find the fix for my organization since this problem is coming up more and more lately.  
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Does this happen on a new user account on the PC that has administrative privileges?
If not, the problem is permissions - use procmon.exe and look for ACCESS DENIED messages.
If the problem IS there for a different administrator, it's the HKCU for each user (and Default User) that is to blame.

I've seen exactly this issue affecting just PNG images.  I'll have to look it up tomorrow to see what I did to fix it.

In the meantime, other stuff here:
If you haven't done so, please verify the following on an affected system:

Open Internet Explorer.
Click on tools and click on Internet Options.
Click on the advance tab and scroll down to Multimedia.
Select Show Pictures and Play Animation in the website.
Click on apply and Ok.

Restart IE to test

If still bad, try the following: (Make sure IE is closed)

Start>All Programs>Accessories
Right-click on Command Prompt and select "Run As.."
enter details to run as administrator

Execute each of the following: (The first 4 unregister then re-register 2 dll's)

regsvr32 msxml3.dll /u
regsvr32 msxml3.dll
regsvr32 msxml6.dll /u
regsvr32 msxml6.dll
regsvr32 jscript.dll
regsvr32 vbscript.dll
regsvr32 mshtml.dll

Restart IE to test

oops... At the end of above, restart the PC to test, not just IE
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ND02GAuthor Commented:
I attempted above solution, but received message at last step stating "mshtml.dll was loaded, but the DllRegisterServer entry point was not found.  This file can not be registered." - Then again I get the same message on my other 2 PCs

I restarted the PC but still have the same issue.
Dredged up more info from memory...

On mine it was all users except admins could not view PNGs in webpages (just got the red Xs).  It was due to Shockwave Player and was fixed by giving Users Read permissions to the following registry key
HKEY_LOCAL_MACHINE\SOFTWARE\Classes\MIME\Database\Content Type\application/x-shockwave-flash

I'll need to double-check these details tomorrow but I'm pretty sure that was the key to blame!
It was actually:
HKEY_CLASSES_ROOT\MIME\Database\Content Type\application/x-shockwave-flash
Though I think that's effectively the same key.
ND02GAuthor Commented:
Thanks for your assistance.  The tip to use Procmon was good since these types of issues occur often and this will help in the future.
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