I am finding that when I opt to save some sites to Favorites, they are not winding up there BUT, if at some point later I forget that I "supposedly" SAVED that SITE, I try to save it again and am told that it already exists and do I want to overwrite it. What's GOING on?I'm assuming you're using Internet EXPLORER, if so is this version 6 or 7?
Also assuming this is Windows XP?
Do you have multiple accounts on this computer?
Are you running McAfee virus scanner?
Hmm. Unfortunately the only thing I was able to find that was close to this issue was related to issues with the McAfee virus scanner. It may be possible that some other program that you've installed that helps manage your favorites or shortcuts is causing your issues. If you've installed anything LIKE this you may want to try uninstalling that program or look for updates.

Appart from that my only other recommendation would be to update to Internet Explorer 7, which you can get by visiting and getting the updates from http://windowsupdate.microsoft.comhave a look in this folder to see if they are there:

c:\Documents and settings\your user\favourites

replace the underlined with your user name