If u familiar with registry maybe u can try this.. i just found from internet..
Internet Explorer Favorites are missing/empty
When you click the Favorites menu in Internet Explorer, all of your favorite URLs may be missing. This might happen if the Favorites Shell Folder is set incorrectly. Open Registry Editor and navigate to:
For Windows 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
The Favorites Shell Folders path reverts back ?
Sometimes, the Shell Folders path for Favorites may revert to the previous setting. To prevent that, read below:
Checkpoints:
- If you've only altered the "Shell Folders" value, it usually reverts back (in accordance to the User Shell Folders value). You need to alter the Favorites path in User Shell Folders key.
- If you're using an environmental variable such as "%Userprofile%", you need to create a REG_EXPAND_SZ value type, rather than REG_SZ. Also, note that REG_EXPAND_SZ type can accept either formats.
- Disable any browser / favorites management software provided by your ISP and reset the Shell Folders as above. If it does not help, see if the *.URL files exists in the hard drive by doing a file search. They may be present in a different folder. Example.. Earthlink's software...Courtesy of MS-MVP Alan Edwards.
[Related Information]