I don't know about IE7 but I know IE6 stores the favourites as shortcuts in your user folder so the custom order won't be kept.
Now Firefox stores the favorites (called bookmarks) as an html file so your order is retained if you restaore after a re-install.
that's why he has to save the links manually, but this is simple with a cut and paste
eiji
put "favorites" into your run box hit enter
hit edit, select all, copy
save that and email it to yourself or save it to some removeable format
on your new box, go to your email and copy those links which you emailed to yourself, highlight and copy
open the favorites folder in run like you did on your original, paste the list into that folder
I believe that will work but I didn't experiment
you're going to have to do the same thing with each folder and create a new folder with the cut and paste along the same method
or you can open all the folders before you cut and save