Mixed Content in IE 7

I have a secure web page (https) that contains insecure items (image files from the client hard drive). So there is a mixture of secure and insecure items on this web page, which in unavoidable. The problem is that IE 7 is displaying the "mixed content" security warning message every time the web page loads or is refreshed. I want to inhibit this message on the browser. Previous versions of IE would respect a "Display Mixed Content" option in the Miscellaneous section of the IE options. For example, I could add the web site to "trusted sites", set "Display Mixed Content" option to Enabled, and users would not see this message. IE 7 is not respecting this setting. It shows the security warning message regardless of how the "Display Mixed Content" setting i set. Is there a bug in IE 7 that is making it not respect this setting How can I make the IE 7 browser stop displaying this message

Thank you.

This appears to be a known bug in IE7 that will be considered for fixing in the future. I've added your post to the bug details.

As a somewhat insecure workaround the "Display Mixed Content" setting appears to work correctly in the Intranet and Internet zones - this problem is specific to Trusted Sites.

Presumably the bug details are not public If they are can you provide a link

Any chance we can get an update on a potential fix We provide a SaaS application and several customers are seeing this issue, with no settings resolving it. But the vast majority of IE7 users (including myself) are not seeing the problem.

Is it possible that a bad install is to blame