Poz,
This is a known bug in the IE10 browser when in compatibility mode. Please up-vote this bug ticket to increase the likelihood that it will be fixed. https://connect.microsoft.com/IE/feedback/details/774078 The ticket was submitted by the jQuery team.
Have you tried your code sample in real IE7? I tried your jsFiddle with browserstack (WinXP/IE7) and the example worked without an error.
If you were using compatibility mode to simulate testing IE7, then the good news is that using native IE7 works just fine. The bad news is there is a bug in IE10 compatibility mode.