After several exports and imports to and from IE7 and 8, each individual favorite has the .url extension. (This actually occured before upgrading to RC from Vista).I've been advised to create a regkey, NeverShowExtin HKEY_CLASSES_ROOT\InternetShortcut to correct this.However this regkey is in existence already.Should I delete the key, reboot and re-create this key?

Solved - exported favorites to htm file. Opened in Word. Did a Find and replace - replace .url with nothing. Resaved file. Deleted favorites in the favorites folder and imported the saved file.Hope this helps someone!

This is not a solution, it is a way to work around it. I have the same problem is Winows XP and would like to see a fix for it. I have the same quetion as Gordon in his first posting. Does any body knows it ? pls advice....