You could have googled "internet explorer" "sort favorites". That would have told you that you can sort your favorites alphabetically by right clicking one of the in the favourites menu and selecting "Sort by Name." Apparently, you dont even get that option in IE7.
If you want them sorted by date or something like that, you have two options. Get a decent browser (like firefox or opera), or rename your favorites to include the date at the beginning of the name.
