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Outlook 2010 - Personal Folders vs. Favorites

What's the difference between favorites and personal folders?
Does this have anything to do with cached mode?
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cwstad2
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Favorites, located at the top of the Navigation Pane (Navigation Pane: The column on the left side of the Outlook window that includes pa..., contains shortcuts to folders that you frequently use. To increase the space available for your full folder list, you can collapse Favorites.

 

When sending from outlook 2010 you can specify where the sent item is saved either in the Sent Box (Gmail) or in your Personal Folders/Favorites. With VM if you select Personal Folders then it will also be saved in Sent Box (GMail), this is the way GMail works for the virginmedia platform

source

http://community.virginmedia.com/t5/Computers-Gaming/Being-new-to-Outlook-2010-A-few-questions/m-p/119547#M875
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Lior Karasenti

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I'm not using virgin media nor Gmail with my outlook.  Just Exchange at the office, and my DSL account at home.