After reading the blog post Folder Redirection for Favorites on the Same Machine at IE Team blog, I planned to relocate my Favorites folder to a different drive. After relocation, when I tried to add a URL to Favorites, I received the following error:

Unable to create ‘Title’:

Unspecified error

Resolution

There were many posts in the Windows Vista newsgroups about this problem, and here is the thread containing the original solution from MS-MVP Jimmy Brush. The solution is as follows:

• Open an elevated Command Prompt. To do so, click Start, click All Programs, click Accessories, right-click Command Prompt, and then click Run as administrator.
• Browse to the folder that contains your Favorites folder
• Type the following command:

icacls favorites /setintegritylevel (OI)(CI)low

You should now see this message: processed file: favorites Successfully processed 1 files; Failed processing 0 files

• To verify if the Integrity Level is correctly set (optional) to the Favorites folder, type:

icacls favorites

You should see the following line in the output:

Mandatory Label\Low Mandatory Level:(OI)(CI)(NW)

• Type EXIT to close the Command Prompt window.

You should be able to add an URL to Favorites now. Reportedly, this problem occurs as Internet Explorer in Windows Vista runs under Protected mode (low integrity level) by default, and therefore will only be able to modify objects marked with a low integrity level in their system ACLs. When you relocate the Favorites to a different drive, you need to set the integrity level for the relocated folder, so that Internet Explorer (Protected mode) can write to it. This problem does not seem to occur if the Favorites folder is located within your user profile home directory.

Defined Integrity Levels

Here is a screenshot from the Windows Vista System Integrity Technologies Webcast:

Here are some useful links for more reading on Mandatory integrity control in Windows Vista: [Securityfocus.com] Introduction to Windows Integrity Control [MSDN] Understanding and Working in Protected Mode Internet Explorer [Webcast] Windows Vista System Integrity Technologies [Steve Riley] Mandatory integrity control in Windows Vista