Windows 7: Favorites drop down menu not working

I'm talking about the favorites meny that you see on the left side when you open windows explorer. The favorites bar had my favorite folder and most recent places, that used to quickly open folders. Now when I click on the arrow to see the drop down, nothing happens, the arrows goes away...the favorites is just there. Really need help with this...

Right click on Favorites and see whether you can 'Restore Favorites links'.