As for navigation "not working", you haven't provided enough detail for anyone to be able to help you. Are you getting any exceptions? Have you verified that IE is properly configured? Does it happen with every site, or just the one you're trying to navigate to?
--Jim
InternetExplorerDriverService service = InternetExplorerDriverService.CreateDefaultService();
service.LogLevel = InternetExplorerLogLevel.Trace;
service.LogFile = @"C:\iedriver.log";
IWebDriver driver = new InternetExplorerDriver(service);
[1] http://code.google.com/p/selenium/wiki/InternetExplorerDriver
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InternetExplorerOptions options = new InternetExplorerOptions();
InternetExplorerDriverService service = InternetExplorerDriverService.CreateDefaultService();
service.LoggingLevel = InternetExplorerDriverLogLevel.Trace;
service.LogFile = @"C:\Users\{UserNameHere}\AppData\LocalLow\MySeleniumLogs\iedriver.log";
IWebDriver result = new InternetExplorerDriver(service, options);