Windows 7 allows you Pin folders to the Start menu by dragging it over the Start menu, as in Windows XP/Vista. However, there is no option provided to remove a folder from the Pinned items list in Windows 7. As a result, you’re unable to remove Pinned folders from the Start menu without resetting the entire Pinned items listing. This looks like a bug in Windows 7 (which is in Beta as of this writing), but we have a workaround for you.

Pin and Unpin Folders in Windows 7 Start menu
Download and apply the pinfolder.reg registry file from article How to add "Pin to Start menu" option for folders in Windows 7/Vista/XP.
After applying the .reg fix, you should see the Pin to Start Menu option in the right-click menu for folders. For folders that were already Pinned to the Start menu (by dragging), you should see the Unpin from Start Menu option in the right-click menu.
Right-click on the folder that you want to unpin from the Start menu, and click Unpin from Start Menu.

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Works on Windows 7 Build 7000! Thanks!