Dude, you are talking about something totally different, The Pane on the left, expands and contracts the favorite's folder, it's the ADD FAVORITES box that opens, whereas you can either just add a link, or create a new folder and then add it or navigate to an existing folder. When you do open this Box,by clicking add to favorites, in IE7 and in ie8, all the folders are expanded and will NOT contract.. I have 1500 folders in my favorites, can you imagine what a mess this is. I have found two solutions to fix this, and one is USE FIREFOX, with the IE tab add-on which runs IE in Firefox.. and the other is to use something LIKE MAXTHON or some other IE compatible browser that runs on the IE engine. I have found that all IE type browsers that run off the IE engine that the ADD FAVORITES FOLDERS are NOT EXPANDED, therefore this is a Microsoft Browser issue. The programmer that decided to screw IE up like this, is not very smart.. and doesn't have time to surf the web.. LOL to realize how many links one can acquire.. ... Keep in mind, my links are of a ten year surfing span...