I'm in the same soup.
You should be able to copy and paste previous Favorites folder to bring them back. I haven't done it yet.
But that's what I'll be doing tonight (I have a backup) since I just discovered it after IE7 came in.
I think it is really RUDE of Microsoft to not ask whether we'd like to retain favorites, and perhaps other things (trusted sites ...).
If the upgrade to IE7 did not completely wipe out everything, there might be copies of Favorites, perhaps even in the recycle bin. Thing to do is search c drive for "Favorites" without quotes. Will that work? No idea.
Edit: Here is what MICROSOFT says in their FAQ linked to from Grinler's sticky:
Q. If I install Internet Explorer 7 what will happen to my Favorites?
A.When you install Internet Explorer 7 your current list of favorites in Internet Explorer 6 will migrate into the new browser so you won't have to readd your favorite websites when you begin surfing the web.
Perhaps it migrated but not for the two of us
Edited by tos226, 17 November 2006 - 04:59 PM.