Note that the following article is provided by TechTV.
I'm a big fan of a carefully organized Favorites drop-down menu in Internet Explorer. Favorite blogs, favorite news sites, and favorite Windows resources all have their own respective folders so I can navigate through them easily.
I hate that IE adds the Links folder to my Favorites by default. I don't use it and it doesn't fit into how I organize my links. Try to delete the folder and it comes back empty the next time you launch IE. Totally annoying!
I found two easy ways to get rid of that pesky Links folder. If you're not into messing with the Registry, stick with the first one.
1. Delete the Links folder for good
Find the Links folder on your C: drive. It lives in a different place depending on your version of Windows.
* In Windows 98, you'll find the file in the C:\Windows\Favorites directory.
* In Windows XP, you'll find it in C:\Documents and Settings\User\Favorites.
Do a search if you get lost. Once you find the Links folder, just delete it. I promise it'll stay gone forever and ever.
2. RegEdit your way out of Links folder hell
1. Back up your Registry.
2. Launch the Registry Editor by clicking Start, Run, and type "regedit" (without quotes).
3. Go to HKEY CURRENT USER\Software\Microsoft\Internet Explorer\Toolbar.
4. Double-click LinksFolderName in the right pane.
5. Delete the word "Links" in the Value data text box.
6. Click OK.