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Solve : favorites and connecting with ie7?

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A short time back, maybe two months, I GOT prompted to upgrade my ie to 7.  It was probably when I was checking for updates on the dell or ms site.  The statements about better security seemed worthwhile so I upgraded.
Now I have a couple of issues I'm trying to resolve.

First, I have a lot of favorites in a LOT of FOLDERS.  I would like the favorites to display like EXPLORER where you can expand and collapse the list.  However the list is all expanded; i.e. all folders and subfolders are explanded, making the list very long.
Is there some option I can't find that would allow the favorites to display like explorer???
This kind of limited functionality is why I don't like ie.  I just continue to use at at home because I have to use at work.

Second, when I connect to the internet (still using dial-up), a short time after getting connected, a window pops up (Dial-up Connection) essentially PROMPTING me to connect.  But I'm still connected.  If I CLOSE that window, my connection closes.
Is there some option I don't have set properly?
My kids use this same computer, but this does not happen to them when they connect to the internet.  But that hasn't helped my find the option or cause.

Thank you.



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