Display bug in IE7

I see a problem whereby the initial image displays correctly, however clicking the ‘next’ button just renders the animated loading image. This appears to be consistent on my home network if after initially loading the page (after clearing the browser cache) and then refreshing the page. I suspect it is a timing/event problem – but only occurs in IE,- Firefox, Mozilla are ok. I even managed to get http://www.inspiredgraphix.com.au to fail.
I think it occurrs around line 35 of e2photo2.js – the imgloader call, however my js skills are pretty weak.
Any ideas?