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[kb.wisc.edu...]
As I read it, that utility will let you use IE7 to access a web page that is blocking you because it is coded assuming that IE6 is the latest. But it's not going to change the way the page actually renders, just what your browser tells the webserver about its identity. In other words, it gives you a way to modify the user-agent string, but it doesn't actually change the rendering engine.
However, there is help from MS on this issue -- possibly the "hacking' you mentioned.
IE6 and IE7 on one computer - Microsoft releases a solution [webmasterworld.com]