how to use a Kingston 2GB data traveler for a folder on my desktop?

when my old computer lost a motherboard, I had to get a new one. My "favorites" from my Windows IE were saved, all in a folder on my desktop. Now it's time to move to another computer. I've never used a floppy or disc for anything, so looking for details on how to use my Kingston 2GB data traveler to move this folder from one pc to another.
Once the data is placed on the new pc will it be in the same form? (as a folder on my desktop?)
And then the data traveler will be empty and ready for another use?

Now this is a folder of all my favorites from a previous machine. I have NEW favorites on my current computer and they are in the drop down list at the top of my IE browser.
Are all those links located on my system?
where to find that folder?
I can easily move them to my new pc using the Kingston?
Once that folder is removed will my "favorites" list at the top
of my IE be "empty?" (no list)

As I keep using this Kingston, what happens when the data I need to move over is greater than 2 GB?

Notes:
the current pc is Windows XP
the new machine is, unfortunately Windows Vista.
Will this affect anything at all?
My favorites are treaured sites and if I have to manually move them by using open and paper I will.
However,  I have a 1Gb and 2GB Kingston and looking to learn to use them.
WHAT can go wrong? The data is lost somehow during the transfer? Thus a reason to "back up" (but I've never backed up anything but my desk chair)

Could this favorites folder be sent as an attatchment by email just as easily?

Will add points as responses warrant.