Microsoft has patched the OWA S/MIME and IE7 problem. It’s worthy of posting it here again, on the main page even.
The update is live at:
http://www.microsoft.com/downloads/details.aspx?FamilyId=41275DEC-4C01-4C41-AA64-C9DBE5EA3F7E&displaylang=en
The associated KB, 924334 is also live at:http://support.microsoft.com/?kbid=924334
Important Note (this is also mentioned in the KB)
After this Hotfix is applied to the server, end users who have an S/MIME control installed on the client machines need to re-install the control from the Options dialog in OWA.