IE8 Favourites subfolders expanded

Hi.. I am new to this forum but have a small problem that I find annoying. I have many, many folders in IE8, so to make things easy to find, I have a minimum number of main folders and then many subfolders under each general category. I know how to manually arrange them in order of preference rather than non-alphabetical.

The problem is when I go to 'Add to Favourites' all of the subfolders are expanded and because there are so many it makes it very difficult to find the right folder easily or quickly as I have to scan over so many.

How can I have these subfolders collapsed automatically when I open the favourites menu?

I think this problem started when I upgraded to IE7 and it is still there with
IE8. Please remember I am not a computer guru so the simplier the better or I will keep the info and get my computer tech to make the changes next time.
Many thanks

PS- would add a screen shot here if I knew how to on to this site