This tweak allows you to remove the Favorites folder from the Start Menu.

1. Open the Registry Editor click on the Start button on your taskbar, then click on Run and type "regedit" and click on OK to start the regedit utility.
    
2. Expand HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer (see picture 1).
   
   

   Picture 1

3. Create a new DWORD value, or modify the existing value, called "NoFavoritesMenu" and set the value to "1" to disable the Favorites folder.
    
4. The modifications you made will be in effect after you reboot your PC.

Note: This restriction can be used either on a user by user basis by adding it to HKEY_CURRENT_USER or on a computer wide basis by adding it to HKEY_LOCAL_MACHINE.