I've just reverted to IE6 - since "upgrading" to 7 I've lost count of the number of times its been "unable to connect".
I also found it difficult to organise favourites from one folder to another under the new version, though I'll confess that I didn't spend ong trying to figure it out - I don't want to do it often and it should be pretty sef-explanatory!
Instead of being an early-adopter, I think I'll wait till Microsoft get rid of some more bugs in this new, improved version.