Open-up a web page. Click on "Tools" in the top right. Then click on Internet Options towards the bottom of the drop down menu. Also scroll to Toolbars and Explorer Bars in the same drop down menu to find Favorites.
Favorites is located within the users directory, bookmarks are within the favorites folder -- unless you mean within the browser? Internet options is within Control Panel.
Should you require additional assistance and guidance, Microsoft does have an official Windows 7 Support Forum located here http://tinyurl.com/9fhdl5 . It is supported by product specialists as well as engineers and support teams.