Glory, if you are using XP, go to your "C" drive, click on "Documents & Settings" and each user will have favorites listed. (the favorites folders have a star icon)

If you are transferring from Windows 98, go to Start> Programs> Windows Explorer> Windows and you will find your Favorites folder.

You can copy the folder to a floppy and transfer it to your new computer by dragging & dropping to your user folder in XP mentioned above.