Hey There,
I faced this problem few days back and sorted out a solution after going throught the w3c documentation. As the documentation say :
The named character reference ' (the apostrophe, U+0027) was introduced in XML 1.0 but does not appear in HTML. Authors should therefore use ' instead of ' to work as expected in HTML 4 user agents.
So the solution is that, replace ' by ' and IE6 abd IE7 wont bug you any more. Thank god this time it was Internet Explorer’s bug 
Cheers!!
Sachin Khosla
My Email substituted ' for every apostrophe that my wife typed. She has Vista Home premium and IE 7. They said to clear the cache, cookies and temp internet files to clear up this problem. I believe it was in the coding of their HTML. Maybe just a hick-up in the process. Doesn’t hurt to clean out the temps etc anyway, but I think their fix was over simplistic.