I haven't had any problems using the quick reply feature since the very first beta of IE7. There must be something you're not doing that is causing the problem.
I have IE7 on my notebook at home and it works fine. One thing with IE7 is that a lot of the toolbars that you may be used to are missing, so it is easy to miss other items that you are used to seeing. However, the quick reply option should show up regardless.
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