If your having problems editing your internet favourites with Internet Explorer 7 and are gettng error messages claiming that you do not have permission to edit or add/modify your favourites, dont worry, this is a simple problem to fix and is actually caused by Internet Explorer's "Protected mode" being switched on in your web browser.
If you simply open Internet Explorer and look at the very bottom of the browser screen, you should see:
"Protected mode: On"
To change this, simply open Internet Explorer, then you will need to access the browser menu at the top of the screen, this menu has items:
File | Edit | View | Favourites | Tools | Help
If you can not see this menu, press the "ALT" key on the left side of your keyboard, beside the spacebar (Not ALT GR) and you will now see the browser menu appear, so now click on the "Tools" menu item and select "Tools > Internet options"
This will open your "Internet options" dialog box with several tabs across the top for various options, so now you should select the "Security" tab and remove the tick from the "Enable protected mode" box.
Once done, click the "OK" button and then close your web browser and re-open it, now you will be able to edit your browsers favourites, add new favourites and delete favourites too.
Its worth noting, this is NOT a fault, but is a security feature of Internet Explorer 7 and is designed to protect you from either accidentally deleting favourites, or malicious programs on your PC from modifying your browsers favourites such as links to internet banking or other websites that you need to remain secure when using.