I added a new site to ie8 favourites last week deployed via GPO on 2008R2.

The shortcut was placed within a folder. On XP, the shortcut was visible inside the folder, but on Win 7, only the folder appeared but it had no contents.

Any ideas? It is possible that I am not configuring this in the right place - seems to be duplicate IE options in GPO edit although not that I could find for favourites.