Just in case anyone else makes the same mistake i did <blush>
If you install IE7 before you install the R2 “bits” you’ll get the following error
Setup encountered an error while installing the cumulative security update for Internet Explorer. For more information see the log files at C:\Program Files\Microsoft Integration\Windows Small Business Server 2003\Log\KB912812.log..
The installation will the report it has failed
As long as this is the only error you get then you don’t have to worry
Supporting KB Article here
The article also says that if you install Windows Server 2003 SP2 first with IE7 and then install the R2 bits you wont get the error
Personally i was saving SP2 till later!