Reset because I was unable to open my emails. I deemed it unstable and reset it. Trust me, I wouldn't have done so otherwise.
Boy I thought you nailed it with that last entry. Unfortunately that didn't work. And thinking through it, why WOULD it have worked? I mean it told me to replace
C:\Documents and Settings\Username\Favorites
That Favorites folder in C is just as unrecognized as the drop down Favorites in IE8, so why WOULD it matter just switching them out? Good attempt just the same. I have since switched them back.
When I plug my external hard drive (that has the backup copies of my Favorites lists that didn’t work on my computer) into a LAPTOP computer the backed up Favorites work just fine!
This narrows the problem down SPECIFICALLY to my computer. So whatever the problem is with my computer/XP not recognizing the Favorites is the mystery at hand.