One of the nice things about Vista is that you can point that folder where
you like - right click, select properties and look at the location tab.
Mine is on E:/_Favourites.
If you mean, "How do I replace the icons (favorites/shortcuts) in the
left pane with new ones?" well you can simply drag any folders or drives
you want and drop them in the pane on the left. To remove any you want,
you can right click on the favorite and select delete.