Strange IE Favorites behaviour

[SC]

If I open Favorites in IE, it lists the ENTIRE contents of the C:\Windows
folder.

If I explore the Favorites folder it only shows the Favorites I expect to
see (the ones I've added).

I can't find anything in the registry which points to where the Favorites
folder would be, I was expecting such a key to point to C:\Windows\Favorites
or C:\Windows for example.

TIA

 

[Ramesh, MS-MVP]

For Windows 9x Systems:

Open Registry Editor (Regedit.exe) and navigate to the following location:
[HKEY CURRENT USER\Software\Microsoft\Windows\CurrentVersion\Explorer\User
Shell Folders]
In the right-pane, set the Favorites path to : C:\Windows\Favorites

For Windows 2000/XP:
[HKEY CURRENT USER\Software\Microsoft\Windows\CurrentVersion\Explorer\User
Shell Folders]
Set the Favorites path to : %USERPROFILE%\Favorites

The above should be a REG_EXPAND_SZ value, not REG_SZ

Ref: http://windowsxp.mvps.org/IEFAQ.htm#favorites
http://windowsxp.mvps.org/usershellfolders.htm