Well, the re-install was the easiest option, but let's try this:
Can you see the BHOManager class in IE?
Go to IE > Tools > Manage Add-ons, make sure BHOManager class
(Browser Helper Object) from Mercury Interative Corporation is
enabled.
It is recommended to disable other add-ons, such as third-party toolbar, add-
ons from anti-virus companies, etc. This is to make sure nothing is
preventing QTP from hooking into the browser, but that is not the main problem in your case I think.
If this is all the case, you re-register the BHOManager again, but maybe you have not the correct rights.
Close IE and all iexplore.exe processes in the task manager
Close QTP (or restart your machine)
Go to Start > Run, unregister and register BHOManager.dll:
regsvr32 -u c:\WINDOWS\system32\BHOManager.dll
regsvr32 c:\WINDOWS\system32\BHOManager.dll