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What worked for me was overwriting all the files in the /components/com_virtuemart/js/ directory (except for mootools) with the files from the VM 1.1.2 Manual Installation. I'm not sure which of them was the issue, but it worked for me... so far.
75% of my customers use IE 7 and take a look at what some of them will see in the picture below, during Checkout.
Thank you! We have a winner! Who get's the $50 donation, Peter?
Thanks a lot for this hotfix, but no effect in my shops (VM 1.1.3 + J1.5.9, IE7.0.6). All files installed like you wrote, IE7 cache cleaned, nothing ...
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