Actually, NO. TwentyTen does not work fine in IE7.
The dropdown menus break in you go below one level. Specifically, if you mouse over the child menu options and then mouse off…..and then return.. the last hover stays open, but with no links…just the link bg color. Also, the menus z-index is off in ie7.
This is with a fresh, clean install of wordpress…so please dont tell me to validate my code. This def a problem that is not being addressed.