It's a standard windows 7 installation not VM. IE version 8.0.7601.17514. I dont have any other plugin installed except gwt since I dont use IE but we do support IE. Let me know is there any way I can share my screen with you so you can do some more debugging if needed.
Thanks - I'll try to collect more data on our end, see if we can reproduce your conditions and results.
One last thing to check - is IE8 the only instance of IE installed? And have you been able to reproduce this issue on other machines? Likewise, do you see that this issue *doesn't* happen on any other machines? Any help you can provide to narrow down the conditions will help us to reproduce it and come up with a fix.