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If I'm understanding correctly, you shared the same Profile with Netscape 7.0 and 7.1? If so, this is the root of your problem, as you must have a separate Profile for each Netscape application, or chaos erupts! This from the Netscape 7 Release Notes:
Preferences
Do not share a profile between Netscape and Mozilla browsers. Doing this can lead to unpredictable results, which may include loss of Search settings and preferences and unchecked growth of the Bookmarks file (large enough to freeze your system). It is best to create a new profile for each or manually copy (and change the name) of an existing profile.
What you need to do is create a new Profile for Netscape 7.1. Check out Creating a New Profile which will guide you through the process of copying all data to the new Profile.