When you click the Organize Favorites option under the Favorites menu in Internet Explorer, the following error occurs and the Organize Favorites dialog appears blank as in the graphic below:

This happens due to missing Microsoft JScript registration. And the fix is to register the DLL.
Windows XP
1. Login to an account that has administrative privileges.
2. Click Start, Run. Type the following command:
3. Press {ENTER}
Windows Vista and Windows 7
1. Open an elevated Command Prompt window. To do so, click Start, click All Programs, click Accessories, right-click Command Prompt, and then click Run as administrator.
2. Type the following command:

3. Press {ENTER}
You should see the "DllRegisterServer in jscript.dll succeeded." message box.

Logoff and login back. See if you’re able to open the "Organize Favorites" dialog in Internet Explorer successfully.
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Worked first time just as stated for WinXP, I’m so grateful. Thank you.
Very helpful, and it worked. I’m surprised that this solution wasn’t offered by
Microsoft’s own support team on their own support forums!
great fix, worked immediately!!
It fixed the favorites problem and also fixed the problem of micosoft update not being able to change to windows update.
Thanks. This fixed issue I’ve been having with e-bank on website opened through “favorites”.
Nope, comea back that it’s not capable of registering it. :(
Now that i have bought a new PC with new software this problem also didn’t occur anymore
Awesome, that worked beautifully, and only a few seconds work. Thank you!
This fix worked! I tried 2 others and nothing just a different error 104.
I am still using Windows XP and had the same problem as a nonprivileged user, not as administrator, but the hint didn’t fix the problem.