Official Microsoft solution to running IE6 and IE7 simultaniously
The best way to use multiple versions of IE on one machine is via virtualization. Microsoft has recently made Virtual PC 2004 a free download; we’ve taken advantage of that by releasing a VPC virtual machine image containing a pre-activated Windows XP SP2, IE6 and the IE7 Readiness Toolkit to help facilitate your testing and development. The image is time bombed and will no longer function after April 1, 2007. We hope to continue to provide these images in the future as a service to web developers.
Excellent, and surprising news. It seems like the IE team really do care about us web developers. Cheers guys! 
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- Sat, 2nd Dec 2006 at 17:12 UTC
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skip to comment formGot this working on the works PC perfectly - though the IE team forgot to tell you what to do once you download the software (it's not as simple as just downloading and running the application). Here's how to get it working once you've downloaded it:
1. Download and install virtual pc. (link provided on IEblog)
2. Download and install the WinXP/IE6 IE6 image. (link provided on IEblog)
3. Start Virtual PC.
4. Choose 'Create new…'
5. Choose 'WinXP' and provide a location on your hard disk for it to save to.
6. When it asks for a Hard Drive image, point it to where you uncompressed the downloaded WinXP/IE6 image.
7. Wait for a while
8. Load Virtual Machine and boot up the image you made.
Once again, thank you IE team, you guys rock.