I think this may be what your looking for..
Hide Links Folder on Favorites Menu (All Windows) Updated
This tweak can be easily applied using WinGuides Tweak Manager. Download Now!
Internet Explorer persistently creates a Links folder on the Favorites menu, this tweak allows you to remove it.
There are two methods that can be used to hide the Links folder, one using the registry and the other using file attributes. Both methods are detailed below:
Using the Registry
Open your registry and find the key below.
Set the value of "LinksFolderName" to equal a blank string. Open IE and delete the Links folder from the Favorites menu.
The next time you start Internet Explorer the Links folder will not be recreated.
Using File Attributes
Using Explorer find the location of your Favorites folder (e.g. C:\Documents and Settings\Joe Bloggs\Favorites) within that folder will be a sub-folder named Links.
Select the Links folder and right-click (or secondary click) and select Properties, check the Hidden checkbox and click OK.
From now on the Links folder should be hidden from the Favorites list. This works for any other folder or link on the favorites menu as well.
Note: The Links folder must be manually deleted from the favorites menu. This tweak stops it being automatically recreated.
(Default) REG_SZ (value not set)
LinksFolderName REG_SZ ""
HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Toolb...
Registry Settings
User Key: [HKEY_CURRENT_USER\Software\Microsoft\Internet Explorer\Toolbar]
Value Name: LinksFolderName
Data Type: REG_SZ (String Value)
p.s. Does this mean i'm a tech-ie for the day..