The Favorites folder in Outlook 2010 is really just a section of the navigation pane in which you can add shortcuts to folders that you use regularly. For instance, if you have multiple accounts set ...

To do so, browse to the folder which you want to be added to this section. Next right-click on Favorites in the left side navigation pane, and click on Add Location in Browser to Favorites.

I have a USB flash drive that I take my email file from home to work. I'm also trying to put my favorites on it, so that when I plug it in and click on the Favorites in IE (or explorer) it's reading ...