Problems deleting favorites in IE 10

Hi Experts,

I am setting up a new PC and running into a few problems with IE 10 and my favorites.  When I import my favorites from a file they show up.  I see them listed in the favorites menu and under my profile c:\users\<my name>\favorites.  

The list I imported was a little unorganized.  I wanted to clean it up by deleting folders and removing dead links.  When I right click and try to delete a folder I get
"Could not find this item.  This is no longer located in <above path>.  Verify the item's location and try again.

I have gone through a few steps already.  
1.  I tried deleting in safe mode
2.  I tried to use Unlocker to delete it for me.
3.  I tried a suggestion on another board to delete it via batch file run as admin.
     SET DIRECTORY_NAME="C:\Users\<name>\Favorites\<specific folder>"
TAKEOWN /f %DIRECTORY_NAME% /r /d y
ICACLS %DIRECTORY_NAME% /grant administrators:F /t
PAUSE

Everything I have been doing is as admin.  

I cannot get rid of these things.  

I need to use IE for work so the suggestion to use another browser is not going to cut it.
The PC is running Windows 7 Pro 64 bit.  I was running Xmarks for IE at one point, but I was not sure if that was compounding my problems so I disabled it.

Thanks for any ideas or suggestions,
Mike