I just downloaded the updated internet explorer version 7 and the tool
bar or menu item at the top of my screen which used to be very close
to the popup blocker button has disappeared.  Now I have to go to
Outlook to find my list of favorite websites.  What happened?

Hello dogjudge,

Thank you for your question.

In IE 7, click TOOLS, then click Menu Bar.

This will bring your menu bar back.

Search strategy:
Personal knowledge

If you need any additional clarification, let me know and I'll be glad
to assist you.

--keystroke-ga

Ctrl-Shift-I should bring up your list of Favorites.

Right click on the toolbar and select customize. Is it in the list of
items in the toolbar? If not, that's where you add it. If it's already
there, you may need to unlock the toolbar (if it's locked) and drag it
to the right to see it. You can move the Favorites icon to the left by
dragging it--after you find it.