First, according to Windows Live Toolbar support, is to close all instances
of IE, then reopen. Then go to View...Toolbars.
Try running this little program:
http://www.kellys-korner-xp.com/ToolbarRepair.Exe
This little app should repair the registry entries that have become fouled
up.
Or try this:
http://toolbar.google.com/fixmenu
Or, manually, courtesy of Doug Knox, MVP:
Close any open Internet Explorer and Windows Explorer windows.
Click Start, Run and enter REGEDIT
Go to:
HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Toolbar
There are 3 sub keys: Explorer, ShellBrowser, WebBrowser
In each of these sub-keys is the entry for ITBarLayout
For IE Toolbars: The WebBrowser Sub-key directly affects IE.
For Windows Explorer Toolbars: The Explorer Sub-key directly affects
Explorer.
The ShellBrowser sub-key may affect IE as well. Its effect on IE and
Windows Explorer is unknown at this time, so if the first option doesn't
work, delete the ITBarLayout value here as well.
Choose the relevant sub-key and right click where it says ITBarLayout and
select Delete.
The deleted value will automatically be recreated for you.
You may want to right click on the main key (above) and select Export. This
will allow you to backup the contents of the whole key, including subkeys.
You can then rearrange your toolbars as you wish in IE.
More troubleshooting help here -
http://www.google.com/support/toolbar/bin/answer.py?answer=9245&topic=925 -
just substitute the WLT for Google.