How to setup Windows 7 firewall to work like a normal personal firewall?

Solution 1:

By default, Windows Firewall with Advanced Security allows all outbound network traffic.

To block the network traffic for prohibited programs, you must create an outbound rule that blocks traffic with specific criteria from passing through Windows Firewall with Advanced Security.

Alternatively, you can change the default outbound action to block, and then create outbound allow rules to allow required traffic. This technique is demonstrated in this TechNet article.

Solution 2:

Windows does not notify you when programs make outbound calls, because it is very costly CPU wise, and even more costly from a software development standpoint.

To control outbound traffic, you'll need to block all outbound traffic then set specific rules.