I just did some tests, and I think I found a way to solve the problem, this is a javascript solution that listens for the collapse show event and sets the z-index of list items and anchor elements inside navbar
$('.nav-collapse').on('show.bs.collapse', function () { $(this).find('li,a').css({'z-index':'auto'}); })
I donβt know for sure that the problem is with IE7, but I think that somehow setting z-index forces redrawing elements of some type.
Here's a test script http://jsfiddle.net/7jmNu/31
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