Editing Internet Explorer Favorites
The “Organize Favorites” function in IE is pretty primitive and can be a pain to use. It is much easier instead to open the Favorites folder directly and to do editing functions there. Since IE Favorite are just files, they can be moved, renamed, and deleted in the same way as any group of files. Also, new subfolders can be created for new categories. Favorites are buried in the folder C:\Documents and Settings\{current user}\Favorites, so accessing them can be tedious unless you use a shortcut. One quick way to get to the Favorites folder is to enter “favorites” in Start-Run (without the quotes). You can also create a shortcut as described here.
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