A default install of Windows Server 2003 ships with a locked-down Internet Explorer, in a so-called enhanced security configuration. Getting rid of it was done via configuring the Windows components. Not so on Windows Server 2008. At first of course I looked in all the wrong places (after all who reads a text they "know"?), until I found it in Server Manager:
You can turn it on / off separately for administrator or users:
Why did I turn it off? Because when it is on, you cannot view IIS7 FREB log files - the XSL has code in it that won't run in any browser but IE. At least at Beta 3 of Longhorn, that is.