I don't really understand why, but what fixed this for me was to remove the $PORTAL_ACTION$ on my form definition. So my form statement in my CP html now reads simply:
<form method="post" action="">
I tested over and over and this seems to be rock solid for me. Had the exact symptoms you described before blanking out the action.
good luck,
-Steve
I have the same problem, IE7 works fine on xp. I have vista users that used the portal fine up until a couple of weeks ago when i upgraded the firmware from 1.231 to 1.233. After that the vista users had the hanging problem on redirect through the portal. They show as logged in on the web admin side but just hang. They have ie7 so i rolled back to the 1.231 but they are still the same. A number of MS updates were released at the same time of the upgrade which makes me believe that it may be a security setting which may have changed. I just want these vista users to work again.