>I thought IE was suppose to restart the download of a file at the point where the download was stopped. Isn't it suppose to be the case?

Well, no IE does not support this. For me I use an FTP software which gives me a good feature, one of them is I can continue the downloading without lossing what I already downloaded, does not mater you lost the connection or any other reason.
the software name is 'Bullet Proof FTP', you can get a trial download copy for 30 days, but in fact you can reinstall it an reuse it forever, but there is a trick for reinstalling. get a copy and try it.

http://www.bpftp.com

if you have any problem with getting the file inform me and I'll send you a copy by email it is not big file 558KB only.

Rgrds