Hi, everyone.
Heres how to remove the "Favorites" folder in tree-view of Windows Explorer:
1. Open regedit and go to [HKEY_CLASSES_ROOT\CLSID\{323CA680-C24D-4099-B94D-446DD2D7249E}\ShellFolder]
2. Right click and go to "Permissions" and allow your user/userclass full control of the folder.
(if you're unsure about how to do this, see this article:
http://www.mydigitallife.info/2009/0...ows-7-explorer)
3. In "ShellFolder" go to 'Attributes' and change the value from 0xa0900100 to 0xa9400100.
4. Leave regedit.
5. Reboot your machine. If everything is done correctly "Favorites" should now be disabled completely when your system is rebooted.
6. Enjoy life without the annoyance that was the "Favorite" folder.
Hope this helps
- Anders
Edit: After some testing it seems that 'a0400100' is enough to disable it.
I had some random results on my system when I removed the 9, though, but from testing on other systems it seems that it works without the 9. Keep or remove, it works both ways

Heres proof:
http://img211.imageshack.us/img211/846/w7nofav.jpg