I should have been a bit more informative on the error and differences in the servers install. I have tried to install both IE 7 and IE 8, this works fine for both on the DL-360 but not on the BL-400. On the Blade server IE8 creates even more errors. It enables Enhanced Security and will not disable for any users. (Even by disabling this on the server). This results in the server asking to add every page to the safe list. I have read that a lot of people have had a problem with the KB950050 update and re-installing the server, without the update, fixed this. Will this be installed automatically the servers do use the hardware in a virtual way.
Many Thanks