Explorer 7 - Adding Favorites - IE 7.0.5730.11

Perhaps I'm being a little slow here.
In IE 6 when you wished to add a site to your favorites, the display showed
a list in a collapsed view. You could then click on a folder to expand that
folder to display the sub folder(s) (much like windows explorer). In IE 7 the
default expands all the folders and subfolders making it a slower process to
navigate to the desired folder.
I have looked in the settings for IE 7 but have been unable to find an
option for this.
Am I missing something or is this option not available.
Thanks in advance.