Favourites problem?

Acer Laptop running windows 7

Desk top PC windows xp

If I select to save a webpage in favourites on the laptop on clicking the 'Create in' tab every folder and subfolder I have shows in favourites making it difficult to find a folder I created on favourites to save particular web pages.
Eg: To save a drawing webpage to Art web on favourites I have to search through all folders to find Art web Why do all of my folders show like this on the Laptop ?
This doesn't happen on my Desk top PC it only shows either webpage and folders I've created in favourites

Many thanks for your replies.