I figured out the problem. In order for the logo to appear in IE7 you have to go into the big_head.php file and enclose both the tagline and the logo in div set. No styling needed. works fine now.
Hope this helps anyone else who discovered this issue
this is what it looks without the changes:
<?php bloginfo(‘description’); ?>
">
” src=”<?php echo bloginfo(‘template_directory’) . ’/images/logo-trans.png’; ?>” />
<?php bloginfo(‘name’); ?>
This is what is SHOULD look like:
<?php bloginfo(‘description’); ?> ”>
I will have to release an update soon to address this.

The html version is just like any other html theme you find and has no php at all.

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