One of the new features built-in to IE 7 is the ability to accept and/or block any or all cookies if desired.
Recommended Settings Open Internet Options | Privacy, click on the Advanced button. Place a check in "Override automatic cookie handling".
Set "First Party Cookies" to Block, set "Third Party Cookies" to Block.
Note: you will need to manually Allow certain cookies, you should add: "*.microsoft.com" (no quotes) to the "Always Allow" list to avoid any problems with Windows Update or the many other Microsoft sites, including the MSKB which requires Cookies to be accepted. I would recommend adding any sites that you frequent such as Banking, and any sites that require you to log in, etc.
You'll find that after a while this only requires a very short list.
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Set "First Party Cookies" to Block, set "Third Party Cookies" to Block.
Note: you will need to manually Allow certain cookies, you should add: "*.microsoft.com" (no quotes) to the "Always Allow" list to avoid any problems with Windows Update or the many other Microsoft sites, including the MSKB which requires Cookies to be accepted. I would recommend adding any sites that you frequent such as Banking, and any sites that require you to log in, etc.
You'll find that after a while this only requires a very short list.
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