Polyfill collision issue

I’ve been using ie-7.js for a long time now but is it correct that it has been somewhat replaced by html5shim which itself has been somewhat replaced by Modernizr? I had been under the impression that Modernizr simply checks to see if a certain feature exists in a particular UA and then the developer could do or not do different things depending on the presence or absence of a particular feature. But if does all that PLUS helps older browsers recognize newer elements then apparently I can remove the html5shim. But I think ie-7.js is the only polyfill to help older browsers recognize newer CSS. Is that correct? Seeking clarification…

Modernizr contains the html5shim. It may not contain all things ie-7.js has. ie-7.js makes transparent PNG work correctly, for instance. I would use both. Here’s the link to ie-7.js: http://code.google.com/p/ie7-js/