I figured it out. I friend pointed out to me that IE will disable links from firing on a page, if the page called in the iFrame is not on the same server. While both pages were on the same server and under the same DNN installation the URL being called was using a different URL then the parent page.
So, since all URLs in a single DNN installation points to the same folder on my server i thought there should be no harm in changing the URL to the same as the parent page.
Once I changed this
Image1 = "http://www.mysite.com/" + PostPath1;
Image2 = "http://www.mysite.com/" + PostPath2;
Image3 = "http://www.mysite.com/" + PostPath3;
to this:
Image1 = "http://www.myparentsite.com/" + PostPath1;
Image2 = "http://www.myparentsite.com/" + PostPath2;
Image3 = "http://www.myparentsite.com/" + PostPath3;
IE started working! I hope you guys will find this useful!