Re-installing PE 1.0.1 on Windows 7 OS - Issue with install wizard saying IE to be 0.4 or above?

I have Photoshop Elements 1.0.1 and I know that its an old version but its suitable for what I use it for.  I have the serial number and disc.  My computer crashed and needed a new one.  I have a Windows 7 OS and my IE is the latest version.  But when trying to install the install shield wizard stops during the process and a message appears saying that " the program can only work on Internet Explorer 4.0 or above and needs to stop installing ".  I don't understand why I am getting this message as I have checked and I have the latest IE?  Is there a setting I need to change??  Any help would be appreciated...

Hi Roey,
Photoshop Elements 1.0.1 is a very very old software and is incompatible with Windows 7.
Please consider purchasing the latest version 12.

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