Hi,
Update: 1.7.7.2 is release which fixes the problem for me ;).
A user has found out that the alpha function (the hover effect on the folder pages) is not working in TWG because it was changed in IE8.
I have already changed the implementation and testing this right now.
For more details about this change you can go here:
http://realtech.burningbird.net/graphics/css/opacity-returns-ie8
I will release an update soon when all tests are finished.
– Michael