Is it because you don't have flash 9 for IE? You don't have any alternate content/text in the flashcontent DIV, so the user will not see anything if they don't have flash 9 as you have specified or javascript.
Also, You should put <script type="text/javascript" src="swfobject.js"> between the <head> tags as specified in the docs.
Hey Mirzahat! I've got same problem in IE7 SWFObject 1.5 doesn´t work. I have flash 9 installed on it and i put <script type="text/javascript" src="swfobject.js"> in it's correct path. In IE7 doesn´t work even in the test official page http://blog.deconcept.com/swfobject/expressinstall.html Check it. Might be we have to try with SWFObject_2_0_generator but I’m in the process of testing.