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Right click an empty area on the Desktop, drag the mouse to Arrange Icons and choose an arrangement option.

In each folder left click on View> Arrange Icons> left click on your choice of arrangement. Or right click in a blank area of a sub-folder and drag the mouse to Arrange Icons. If the sub-folders are listed with details you can simply left click a column header. The favorites folder can be arreanged the same way.

I'm not sure what you mean be Favorites in Outlook Express. If you are referring to creating folders in the folders section you can right click on the Local Folder then left click on New. To create a sub folder right click on the parent folder then left click on New. If you want to move an email to a folder left click on the email and follow the prompts.