Why does IE look like this ?

[soybean]

Basic problem IS solved but I don't want IE7 -_-

You mean you want to get rid of the "Beta 1" in IE's title bar, right?  I'd try the registry change explained here: http://www.accessmylibrary.com/coms2/summary_0286-12019195_ITM

Specifically,
To unbrand IE, open the Start Run box and type:

rundll32.exe iedkcs32.dll,Clear