Rajendra, the Tester

McAfee comes with a host of security features along with Intrusion Prevention System (IPS).
It seems IPS is not compatible with QuickTest.
If you try to open IE7 while QuickTest is already open, IPS will kill the IE7 process.

Solution: 
Right click on Mcafee icon in taskbar tray
Mcafee Host Intrusion Prevention -> Disable IPS