Vista Tutorial - My Favorites has moved to a folder

I went to my favorites today (the yellow star symbol on the browser) and got
this message
C:\users\ch\videos\favorites\
favorites refers to a location that is unavailable. It could be on a hard
drive on this computer, or on a network. Check to make sure the disk is
properly inserted, or that you are connected to the internet or a network,
then try again. If it still cannot be located it may have been moved to a
different location.

Now I have been using the pc every day and have made no changes of which I
am aware. I only managed to find where my favorites had gone, by using
SEARCH. I found them in a folder all set out in individual folders. But
clicking the "star" only brings up the error message I mentioned, and trying
"add to Favorites" puts them in the folder mentioned above. I discovered they
are in a folder named Vista (C >users>ch>videos>favourites, which I never
made, as far as I am aware. I want to know how to get them back to the
conventional list I had before. I have Windows Vista and IE7.