AYG, from what you've said, I suspect that your browser has been updated to IE9, which has 3 icons on the top right corner of the screen, if this is correct, then your favourites are now contained under the middle star icon, which has your favourites, history and feeds. If you wish ot have your favourites permanently displayed click the star, which has a small icon in thee top-left corner of the drop-down area, this clips your favourites, etc to the left-hand side of the screen, and holds them open.
This would bring your favourites back onto your screen, but unfortunately, not where you expect them, I'd go back to your previous browser if you don't want the new browser - just uninstall the new browser, & re-install the original.
Also, if you want to close the dreaded Google toolbar, then right-click on the bottom of the screen, select the toolbars line in the menu, and uncheck the google toolbar.