On the ‘Folder’ ribbon the ‘favorites’ section does not appear. Right clicking the ribbon and choosing ‘Customize the Ribbon…’ shows the ‘Folder’ tab as being selected and within that tab are ‘New, Actions, Clean up, Favorites, Share, IMAP, Properties’. ‘Favorites, Share and IMAP’ do not appear on the ribbon.
I tried a MS Outlook 2010 tutorial but in that this problem does not exist.
You of greater knowledge - what next?

Start -> Run; "C:\Program Files\Microsoft Office\Office14\outlook.exe" /resetnavpane

(check the location of your outlook.exe first)

I have just followed Lightninghawk's suggestion and it worked. I do hope it stays that way - many thanks.

Thank you, Please mark the thread as solved and feel free to rate my help as well :)