I noticed a bug in IE7 related to the table tab of the table properties dialog. Just do the following to replicate this on the demo site:
1) Create a table
2) Right-click and go to table > Properties
3) Go to the Table tab
4) Click on either the background color or border color boxes
In Firefox, you get a color dropdown just like older versions of the editor. However, in IE7 these dropdowns do not appear. I would try to help out with this problem, but it appears the javascript is all obfuscated so I can't possibly follow it or try to correct the problem. I am noticing this problem with the .NET version of the Cute Editor, and you can see that it does this on the demo version here on this website.