While executing QTP scripts in IE7, following error is being occured. Please help me to resolve the same.

Error - "Internet Explorer has encountered a problem and needs to close. We are sorry for the inconvenience."

Error Signature:

AppName: iexplore.exe AppVer: 7.0.5730.13 ModName: mshtml.dll
ModVer: 7.0.5730.13 Offset: 0018bef8

Well, I am not familiar with using QTP scripts. I assume you mean Quick Test Professional?

At any rate, most problems with IE occur due to corrupt add-ons, or conflicting add-ons. So you might try to reset IE. See How to reset Internet Explorer settings

Also, note that IE7 is obsolete, outdated, and therefore lacking in security. I recommend updating to IE8.

How did you get IE7 on Windows 7? It comes with IE8.