Favorites are not in the documents folder.
What I did was downloaded chrome as my wed blowser and all those lost favorites were there. This was after I had downloaded IE9 and those favorites were still in no fine land. Well I don't like IE9 at all but was trying to move my favorites from chrome to IE9 and kept getting "not valid name".I was trying to import them to IE9.Tryed to save them to a flash drive from chrome and couldn't.
Sense I don't like IE9, I unstalled IE9 and tryed to download IE8 back, would you folks belive this, but Windows 7 comes with IE8 preinstalled but if you try to download it back on to Windows7, it says it is uncompatible with Windows 7. Microsoft has some real genus' working there.
To end this nightmare, system started act funny and then crashed, so I had to do a full recovery and lost everything, so now I'm back to surfing the web trying to fine those lost links.
Guess you could mark this as solved.