These are the things I've tried so far:
1. Resetting profile
2. Uninstall/reinstall python
3. switching display drivers
4. changing default printer
5. uninstall/re-install 10.7
6. uninstall 10.7 and install 10.6 (this one I'm not sure about, I don't know if upgrading the license manager had something to do with it)
This is the arcmap.exe /log file:
Parsed command line
Processing shell command...
Creating New Document...
Opening normal template...done...
Loading printer information...done...
New VBA project...done...
Add first mapDone creating New Document
Any help getting ArcMap up and running would be helpful!