This is unintended functionality due to changes in Internet Explorer 7.
Complete the following to resolve this issue:
1. In Internet Explorer 7, select Tools > Manage Add-ons > Enable or Disable Add-ons.

2. From the list, choose SnagIt Toolbar Loader. Do not select SnagIt.
3. Click Disable.

The add-on can now be enabled or disabled in the normal manner in SnagIt.
If the add-on is still present in IE, run the following command from Start > Run:
regsvr32 /unregister "C:\Program Files\TechSmith\SnagIt 8\SnagItIEAddin.dll"
Note: The path in the above command is the location that SnagIt is installed in. If you have SnagIt installed in a different folder you will need to change the path to the folder that you have SnagIt installed in.
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