I use the IEAK for packaging IE into automated (scripted) installs for new workstations. The only thing that IEAK has that might work as a deployment tool is something called "automatic configuration scripts". These are configured in "internet options->connections->lan settings" and are mostly used to administer IE settings from a central .INS file hosted on a web server (kinda like Windows NT policies).
I have played with it and it does work (although there were some major problems with it in IE4.0). But I was using it to set settings and restrictions.
I think (somebody correct me) that you can configure the autoconfig script to automatically upgrade your client IE on next browser invocation. You basically point the autoconfig script to your .CAB files on a Web Server and away you go.
I highly suggest (if you haven't done so already) to download the "Microsoft Internet Explorer (IEAK) Corporate Deployment Guide". It's one of the best pieces of MS documentation I've yet seen and it might tell you more about the possibilities of using autoconfig.
Luck,
-Shawn