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.