Unable to create Folder_Name: Unspecified Error

[chicagotech]

Symptom 1
When you try to add a Web site to the Favorites folder, you receive the following error message:
Unable to create Folder_Name: Unspecified Error
Symptom 2
When you double-click some links in the offline Favorites folder, you receive the following error message:
The target of this Internet Shortcut is not valid. Go to the Internet Shortcut property sheet and make sure the target is correct.

Error messages occur on a Windows Vista-based computer when you work offline in a redirected Internet Explorer 7 Favorites folder
http://support.microsoft.com/?kbid=939390&SD=tech