IE7 Cannot save favourirtes

IE7 running under Vista Ultimate.

Recently had to do a complete rebuild and I have, and can use, the
favourites I restored.

However when I try to save a new favourite URL I get the merssage "Unable to
create <<new web favourite>>. Unspecified error.

I have restored IE7 but it still will not let me save a new favourite, nor
will it let me edit a favourite [which I no longer need] to the new url and
description, I get the same error message.

All MS updates [except some foreign language ones] are installed as soon as
notified.