Microsoft wasted a lot time and created additonal bloat by creating the Organize sub menu. Because it does'nt save time or do anything special.
I would second that.
what i understood about andru's problem was, the links in his Favourites folder appears in alphebetically without his interaction. so i am afraid that even after he manually move each link to the place he want, they will re-appear in alphebetical order - eventually.
btw, in contrast: i am looking a way to make the links in my Favourite folder to appear in alphebetical order, and i haven't come up with a solution yet.