Windows 7: collapsing the menu on 'Add to Favorites'

I have a LOT of internet favorites that are well organized in folders and sub-folders for easy finding. My problem in Windows 7 is that whenever I 'Add to Favorites' and click on the "Create in:" drop-down menu to indicate which folder I want to add the Favorite to, I get a fully expanded Favorites menu that is about 10 screen-lengths high. Scrolling through that to find the folder I want, every time I add a new Favorite, is a royal pain.

Is there a way to make the Favorites menu open in collapsed form, with plus signs to expand as needed (the way XP used to work)?