Favorites have also changed in IE 7. Now there is a Favorites Center for organizing your site bookmarks.
Click the Favorites Center button at the top left of the screen and the Favorites window will appear over the left of the site you are visiting. To fix it in a separate window pane away from the page as in IE 6, click the Pin the Favorites Center button in the top right of the Favorites Center window.
You can use the History drop-down menu to find sites you have visited before.
To add a site to your Favorites list, right-click the page and select Add to Favorites, or click the Add to Favorites button at the top left of the screen.