On Aug 16th Frans mentioned this in a post. My company upgraded to IE 7 last night and we are now having this issue below.

Not really 7.6.2 bug, but when you use IE 7, run a report out of dev studio, forget to close the IE page, run the report again. Then dev studio closes the IE page but doesn't show the report. After that you can't run any report and the solution is restart dev studio.

Dimitris Poulos suggested the following.

Reply to issue posted by Frans: Issues running Dev Studio reports with IE7
We just encountered this issue at IBI as well and we are actively researching.
As a workaround, you can set Dev Studio to open new browser session for every request by checking the option "Use new browser to execute" in the General tab of the Windows Options dialog
As noted earlier, issue occurs with IE7 and not IE6.

Does anyone know if there has been an actual fix for this situation from IBI? We are opening a case but just thought I would ask.