...you choose to make it there on Internet Explorer 8.. To add, or remove it, RIGHT click on a blank area in the upper toolbar area of the Internet Explorer window, then CHECK or UNCHECK the box next to "Favorites bar".
The "Start-Favorites" options isn't required either. If you click on Start, then RIGHT click on the blank area just above the "Shut down" button, then choose "Properties", then click on the "Customize" button, you can CHECK or UNCHECK the "Favorites menu" box and it will appear or disappear depending on your choice.
To answer your question though, they're basically the same. Both contain the same list of Favorites.. The main difference I see is the toolbar allows the user to quickly add a Favorite by clicking on the little "star with an arrow" button. The Start-Favorties listing only shows your current Favorites. In my opinion, the toolbar also takes up space on the IE window which prevents about a 1/2 inch of screen from being seen. I don't use it.
To each his own.
Hope this helps.