When using IE's Links bar, it soon becomes apparent that space is an issue. Adding just a few links to the toolbar will quickly use up all of the on-screen space. Add a folder to your links toolbar to organize your bookmarks and increase the usable space of the toolbar. Any links placed within a folder on the toolbar will appear in a dropdown menu when the folder is clicked on. Giving the new folder a descriptive name will aid you in keeping your links organized.
To add a new folder to your Links/Personal Toolbar:

1. Go to Favorites.
2. Click Organize Favorites.
3. Click on the Links folder.
4. Add new folders to the Links toolbar by clicking on the Create Folder button.
5. Drag and drop your links or other folders into the new folder to have them appear on the Links toolbar.