as i suspected the issue was policy related
after comparing the hkcu/software/polices keys on my profile with those of a new profile i noticed that my profile had a number of internet explorer policy entries while the new profile didn't have that key at all. They seemed to be set properly and would toggle back n forth from 0/1 when i changed options in ie. however, there was sumtin there it didn't like, cause when i removed the internet explorer key, autocomplete functioned properly again. after some reflection i realized this was due to me playin with doug knox's xp security console app which allows u to apply security settings to current user rather than entire machine and handy for lockin down xp home systems in a business or kid use setting. this app is a good bit older than ie7 so i suspect that is where the problem came from. i did however leave the entries it created for preventing the use of windows messanger as i certainly don't miss it's presence in my task bar.