Here is my startup page:
<html>

<head>
<HTA:APPLICATION ID="oHTA"
APPLICATIONNAME="myApp"
BORDER="solid"
BORDERSTYLE="none"
CAPTION="yes"
MAXIMIZEBUTTON="yes"
MINIMIZEBUTTON="yes"
SHOWINTASKBAR="yes"
SINGLEINSTANCE="no"
SYSMENU="yes"
VERSION="1.0"
trusted="YES"
Scroll="off"
WINDOWSTATE="maximize"/>
<script language="JavaScript" src="LS/lscommons.js"></script>
<script language="JavaScript" src="LS/lspushpage.js" id="w"></script>
<script src="FABridge.js" ></script>
<script src="FABridgeSample.js" ></script>
</head>

<body style="margin: 0px; padding: 0px;">
<div display:none visible=false id="scan" source="lightstreamer" table="hellotable" item="floorupdate" field="scan"></div>
<div id="flashoutput" title="Shop floor Control System">
<noscript>
<object id="flexApp" classid="clsid27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=8,5,0,0">
<param name="flashvars" value="bridgeName=Floor"/>
<param name="src" value="floor.swf"/>
<embed name="flexApp" pluginspage="http://www.macromedia.com/go/getflashplayer" src="floor.swf" flashvars="bridgeName=Floor"/>
</object>
</noscript>
<script language="javascript" charset="utf-8">
document.write('<object id="flexApp" classid="clsid27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=8,5,0,0" height="98%" width="100%">');
document.write('<param name="flashvars" value="bridgeName=Floor"/>');
document.write('<param name="src" value="floor.swf"/>');
document.write('<embed name="flexApp" pluginspage="http://www.macromedia.com/go/getflashplayer" src="floor.swf" flashvars="bridgeName=Floor"/>');
document.write('</object>');
</script>
</div>
<script>
/////////////////PushPage Configuration
var debugAlerts = true;
var remoteAlerts = false;
var page = new PushPage();
page.context.setDomain("ufandd.local");
scan.style.visibility="hidden";
ls = null;
page.onEngineCreation = function(lsEngine) {
//lsEngine.connection.setLSHost("ufdcrdev0005.ufandd .local");
lsEngine.connection.setLSHost("UFD-SQL2008TEST.ufandd.local");

lsEngine.connection.setLSPort(8080);
lsEngine.context.setDebugAlertsOnClientError(debug Alerts);
lsEngine.context.setRemoteAlertsOnClientError(remo teAlerts);

lsEngine.connection.setAdapterName("DATAPUSHADAPTE R");
lsEngine.changeStatus("STREAMING");
ls = lsEngine;
}
page.bind();
page.createEngine("HelloWorldApp", "LS", "SHARE_SESSION");
var pushtable = new NonVisualTable(["floorupdate"], ["scan"], "MERGE");
page.addTable(pushtable, "hellotable");
pushtable.onItemUpdate =
function(itemPos, updateInfo, itemName)
{
// send completed scan to the front-end
if (updateInfo.getNewValue(itemPos) != "")
{
serverData(updateInfo.getNewValue(itemPos));
}
};
function sendMessage(message)
{
debugger;
ls.sendMessage(message);
}
</script>

</body>
</html>

Like I said, works fine in IE7.