Transferring Favorites from Me to Vista

[Vorenus]

Hello. I am in the process of transitioning from my old (antiquated)
Windows Me PC which uses Internet Explorer 6 to my new, top of the line PC
which uses Windows Vista and Internet Explorer 7.

Over the last few years, I have painstakingly saved and organized my
Internet Explorer Favorites into many different folders and would like to
transition (copy) these over to my new PC rather than losing them all and
having to start over.

Can someone recommend the best way to do this? I think I read somewhere
that all IE Favorites reside in one file, which can be copied over the same
file on my new PC? Can someone provide me with step by step instructions
for doing this?

Any help would be very much appreciated. Thank you!