Try start>search for files and folders and type in the word favorites
You should see one or more folders appear and you can simply click on them
to see which is the correct one.
While you are doing that right click send to desktop so you'll always know
where to find it... can be useful. In effect this is the same as continuing
below because with IE your favorites are actually stored in a normal folder
as normal links. You might not want to bother changing the home page setting
at all since this will open IE from any of the favorite links.
When you find the right one (if more than one) simply highlight the path in
the windows explorer input box and right click and choose copy. Then try
pasting that in the homepage address box in IE.
A side effect is that when IE opens it will really be Windows explorer so
your tools>options will be different, however choosing a web address will
bring back the IE tools>internet options so don't panic if you try it and
don't like it, just open a website and then change the homepage back.
Having a favorites folder shortcut on the desktop is useful if you want to
sort favorites in a different order, clicking on the grey column headers to
sort by date etc although this doesn't affect the display from inside IE
using the menu item or button.
HTH Charlie