Fyi...
Windows Live Favorites is now an online folder and part of Windows Live SkyDrive.

http://en.wikipedia.org/wiki/Windows_Live_Favorites
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Windows Live Favorites was discontinued on April 14, 2009 and replaced by Windows Live SkyDrive. All existing favorites saved on
Windows Live Favorites were migrated to the "Favorites" folder on Windows Live SkyDrive.[1]
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Another 'name' evolution :)
Windows Live Folders > Windows Live SkyDrive Beta > Windows Live Skydrive

SkyDrive Team Space/Blog
http://skydriveteam.spaces.live.com/default.aspx
April 14
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Support for Windows Live Favorites
As you already know, you can keep your favorites in sync between computers using SkyDrive and the Windows Live Toolbar. Now, the
next time you visit your favorites on Windows Live, your existing favorites will automatically move to SkyDrive. You can check it
out here: http://favorites.live.com
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--
...winston
ms-mvp mail

"Earle Horton" <earleh@live.com.invalid> wrote in message news:#NA126gvJHA.192@TK2MSFTNGP05.phx.gbl...
> The OP could log in to http://favorites.live.com using INTERNET EXPLORER and see if there is anything there to salvage. If there
> is, he could make a backup to a local disk file.
>
> Earle
>
> "PA Bear [MS MVP]" <PABearMVP******.com> wrote in message news:ulTwyHfvJHA.5708@TK2MSFTNGP04.phx.gbl...
>> [[Forwarded to MSN Discussion newsgroup via crosspost]]
>>
>> Guy wrote:
>>> One day when I signed on to MSN, I found that all my
>>> favorites had vanished. When i started replacing them and tried to organize,
>>> make folders etc, the screen would lock up and say "LOADING". Now when i
>>> sign on, the home page is blank with the message "LOADING". I have tried
>>> everything I know to correct it. I tried Tech Services with no success.
>>>
>>> thanks
>>
>
>