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Unable to save favorites in IE8 on windows 7.

Running w7 with IE 8 installed and am unable to save bookmarks.  the system clocks and goes to not responding.  Not responding lasts 10 minutes or you can end the explorer.exe in task manager.

Troubleshooting so far includes malware\spyware scan (Malwarebytes, combofix and microsft scan), IE 8 reset...even did a profile rebuild.  
Any additional tips would be great. Thanks.
1 Solution
Are you able to browse to the bookmarks folder and create items in there?  If not, this is the place you have to start troubleshooting from.

The path is %userprofile%\Favorites.

It's possible that this folder is redirected to a location which you cannot access - perhaps insufficient rights?  Can you browse to this location, and then right click to New -> Text Document

If that fails, check the permissions of the folder in question to ensure your user has sufficient rights.
have you tried to uninstall IE 8 and then reinstall it. I know a lot of times it can install incorrectly or have a bug in the file. Make sure you have a legit copy and got it from a reliable source.
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