The problem is not only with Front Page display. If you edit the specific php you solve the current problem, but might find the same happening with another module or component.
Now, if you do the following, your fix should work with all modules:
Go To:
/libraries/joomla/html/html/behavior.php
Search for:
$tooltipInit = ' window.addEvent(\'domready\', function(){ var JTooltips = new Tips($$(\''.$selector.'\'), '.$options.'); });';
Replace domready with load:
$tooltipInit = ' window.addEvent(\'load\', function(){ var JTooltips = new Tips($$(\''.$selector.'\'), '.$options.'); });';
Save.
I just did it and it solved all my problems. It seems IE7 does not like domready.
Fixed it all. Thanks!