EDIT: Daniel beat me to it. Yes those JFactory errors suggest you have an old Joomla version or a badly configured install
What are you using as your localhost? Daniel and I both use XAMPP, every other type of localhost server pack is untested. XAMPP is the one recommended by the Joomla developers and it works 100%, so try using the latest version of that instead.
Also make sure you are using the latest Joomla 1.5.X and the latest JoomlaComment 4 Beta.
Is it OK for me to assume you are not silly to be using IE6 either..?