It's not activesync causing it - Outlook does it because it doesn't save the
favorites file until you close outlook. ActiveSync is one of many apps that
will keep it open - but disconnecting the PPC before closing outlook will
generally allow it to close ok and save the favs.

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Diane Poremsky [MVP - Outlook]
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"Nic_285" wrote in message
ups.com...
If you are using ActiveSync (any version including 4.1) then it is
common for it to destroy your favourite folders and there is no fix.