An application uses the Favorites folder of Internet Explorer 7 as the root directory when the application calls the “DoOrganizeFavDlg” function
Consider the following scenario. On a computer that has Windows Internet Explorer 7 installed, you create an application by using the DoOrganizeFavDlg function. In this function, you specify the pszInitDir parameter to define a directory.
In this scenario, you expect the application to use this directory as the root directory when the application calls the DoOrganizeFavDlg function. However, the application instead uses the Favorites folder of Internet Explorer 7 as the root directory. That is, the application ignores the specified pszInitDir parameter.
For more information on this issue, including potential causes, workarounds, and resolutions, see: Microsoft KB Article KB933014.

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