The same thing happens to me. It makes no difference what search engine is
being used or how its configured, it still does it.
I use both Windows XP and Vista Ultimate with IE7. ALL completely updated...
This has been happening to me since the first time IE7 was installed.
learned to live with it.
See this archived, related discussion:
http://groups.google.com/group/microsoft.public.internetexplorer.general/browse_
frm/thread/f0fff6ae704c2242
This one appears to be related, too:
http://groups.google.com/group/microsoft.public.internetexplorer.general/browse_
frm/thread/88b1bb374f72beee
I know there have been other discussions about this but I can't find them as
one cannot search on a punctuation mark (e.f., % ).
IIRC, there was such a bug when IE7 (and, possibly, Vista) was first
released. If so, I believe it was "fixed" in a Cumulative Security Update
for IE7.

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~Robear Dyer (PA Bear)
MS MVP-IE, Mail, Security, Windows Desktop Experience - since 2002
AumHa VSOP & Admin http://aumha.net
DTS-L http://dts-l.net/
> The same thing happens to me. It makes no difference what search engine is
> being used or how its configured, it still does it.
[quoted text clipped - 9 lines]
>>> when searching with the address bar a % sign is added between each word
>>> being searched therefor the sites are not found. can anybody help?????