To Change the Location of Favorites:
Start/Run/Regedit
HKEY CURRENT USER\Software\Microsoft\Windows\CurrentVersion\Explorer\User
Shell Folders. In the right pane, right click Favorites/Modify/Change path.
To verify: On the Favorites menu, click Organize Favorites.
If you have TweakUI installed for Windows XP, go to My Computer/Special
Folders/Folder/Favorites/Change Location