Hi farrjn
Try the following and see if it helps:
Clearing the Temporary Internet Files: -
Safely Delete the Temporary Internet Files
http://www.mvps.org/winhelp2002/delcache.htm
The temporary I.E. files folder is a cache for web pages that you have
visited. I don't know why Microsoft sets the default so high, but I have
seen 2gb set for storage. This and other setting can be changed to decreace
the size of the storage area, and supposedly delete the I.E. temp file when
you close the browser.
or.........
Tip 34 - Internet Explorer Favorites are missing/empty
http://www.mvps.org/sramesh2k/IEFAQ.htm
Favorites are missing
Courtesy of Remesh -
Open Registry Editor and navigate to this location:
[HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\User
Shell Folders]
In the right-pane, double-click "Favorites" and make sure the value is set
as below:
"%USERPROFILE%\Favorites"
or........................
Use FolderRedirector utility and reset the shell folder paths for Favorites
to the default values (both user shell folders and shell folders registry
keys)
Using FolderRedirector utility to redirect special folders in Windows XP:
http://www.mvps.org/sramesh2k/folderredirector.htm
Lost Faviorites Menu
Courtesy of Ramesh:
You need to edit the registry. See "Description of the Microsoft Windows
registry" article:
http://support.microsoft.com/default.aspx?scid=kb;EN-US;256986
If you don't prefer editing the registry, use this utility and reset the
Favorites path to defaults.
http://www.mvps.org/sramesh2k/RedirectFolders.htm
* Select Favorites from the listbox and note down the value there.
* Optionally, you can backup the current user shell folder settings by
clicking "backup ......." button.
* Select Favorites from the listbox and click "Restore default" button in
the right-side.
If these steps do not resolve your problem, please post back to this thread
with the details and any error messages.
Hope this helps
Jan

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