Static Frontpage as Home Page in WP

You all must be familiar by now that in WP versions 2.1 and newer we are able to set a static WordPress Page as the Frontpage if we choose to in dashboard>options>reading.
This has been invaluable for WordPress as a CMS users. And I’ve used it practically each time I set up a new installation.Sometimes the sites I set up don’t use anything but static pages.
Anyway, I came across some odd behavior when choosing a static page called home to be the frontpage. Firefox respected the setting of the page titled home to be the page to display when landing on the site. IE didn’t, showing instead the blog page(index.php). It didn’t seem to matter what I did, IE kept right on being strange.
The way I fixed it was to move all the WordPress files except index.php to another directory.Exactly as the WP Codex says to do if you don’t want all the WP files in your root.
I don’t know why this made IE behave. It just did.

Any other people using WP the same way and who might have seen this odd behavior in IE I would love to hear about it.