Update to my problem: The problem definitely lies with the HelloMinty template. I installed the HelloMini template on our site and the search problem has disappeared (we don’t want to use HelloMini on our site but we’re losing customers using IE7). I also did a fresh install of Magento with XAMPP and installed the HelloMinty template. The problem also appears on the fresh install.
We desperately need to get back to our HelloMinty look. Please help!