Well, you can organize your favourites using the
favourites menu -> Organize favourites option. You can
also press ctrl + B. That way, you can make folders and
sort your favourites however you like.
Or you can browse your favourites like a regular windows
folder by going to your default favoutires directory (the
WinXP default is C:\Documents and Settings\[Your windows
username here]\Favorites ).
I hope this helps.