Vista-strange behavior in IE7

I posted a similar message in the IE forum but no solutions as of yet so
hoping to get some help here. I have created folders and sub-folders in
Favorites in IE7 and all was well until recently. I could add URLs/shortcuts
to any and all folders and subfolders. As of last Tuesday I cannot. All of
the shortcuts still work and I can add to the Favorites Folder that was
there when I first used IE 7 on a new Vista notebook. Maybe this is a Vista
problem.

the post to the other forum:

This problem began Tuesday AM ( perhaps as a result of a MS update?)
Computer is sixweeks old running Vista Home Premium and IE 7. IE runs in
Protected Mode and always has. I have set up folders subfolders in Favorites
but can
no longer add to the subfolders though I can add to the original Favorites
folder. I get an Unable to add (url of the website) Unspecified Error. To my
knowledge, no changes have been made to the system, no new hardware or
software, and I am the only user. MS sent me to the computer manufacturer
who suggested a less restrictive setting in PC CIlllin, which did not help.
Then suggested a special System Restore called WinRe System Restore, which I
have not yet tried; then told me to contact MS.
Suggestions gratefully apreciated.

Harmon