Cookie management with advanced privacy settings
Cookies are managed in IE6 and IE7 through the menu "Tools-Internet Options". (Internet Options can also be reached through the Control Panel.) . The figure below shows the dialog box obtained when the "Privacy" tab is selected from "Tools-Internet Options". To use the advanced settings, click the button "Advanced" outlined in red (not the tab at the upper right.)
The dialog box for "Advanced" settings is shown below. Place a check in the box by "Override automatic cookie handling" and click "OK".
After checking the box, the dialog box looks like the figure below. Settings for First-party cookies, third-party-cookies, and session cookies are available. The settings shown are probably the optimum for many PC users. Blocking third-party cookies keeps out a lot of advertising related stuff and does not interfere with the functioning of any sites that I am aware of. Put checks by the settings you prefer and click "OK".
If you do not like the results from using the advanced settings, return to the Internet Explorer menu "Tools-Internet Options-Privacy". The default configuration can then be restored by clicking the button "Default" as shown in the figure below.
Using an imported privacy file
A lesser known but very useful feature in Internet Explorer allows the management of cookies by importing what is known as a privacy file. The privacy tab dialog box for Internet Options contains a button "Import...". This is shown in the figure below.