I just found out that: for position:fixed to work on Internet Explorer 7 you need to set a proper doctype. Tested it on both Strict or Transitional like so:
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
On Internet Explorer 7.0.5730.13
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niceone