Ah, this is very odd. I wonder if by some chance you are running Bryce 7 standard instead of Bryce 7 Pro. The IL is only fully functional in B7 pro, however the Lab probably can be entered even with the base version, just nothing inside of the IL would work. Make sure you are using a Pro serial number. Sounds silly, I know, but best to rule out the obvious. I’ve never seen this type of error before, so I feel confident we can overcome this.
I do hope you don’t feel your time is wasted too much. Once we get to the bottom of this the fun and joy will come back.