Windows Live Team has announced that they have disabled the Favorites syncing option on Windows Live Toolbar. The good news is that the favorites syncing feature has been turned off on a temporary basis. Read below to find out the workaround for accessing your post.
A few Windows Live Toolbars users reported, that they were unable to see their synced favorites items on their Windows Live toolbar. Luckily, Windows Live Team reports that the users’ favorites are still available on SkyDrive. Those who wish to see and access their favorites can do so by navigating to favorites.live.com.
In order to prevent further damage or lost of favorite items for more users, the Favorite syncing option has been switched off for all users.
Live Team apologized for this unfortunate and promised to restore the Favorite sync feature as soon as possible. They stated on their blog:
We apologize for this inconvenience and are diligently working on a fix to restore favorites from SkyDrive to your PC
In the mean time, those who want to access their favored items can do so in a couple of ways:

View Comments to Favorites syncing on Windows Live Toolbar temporarily disabled
Windows Live Toolbar's Favorite syncing issue resolved | Geekword
November 11th, 2009 at 2:49 pm
[...] the last week, we shared with you the unfortunate news of Live team turning off the favorites syncing option for Windows Live Toolbar. As promised, Windows Live Team has fixed the Windows Live Toolbar issue and has re-enabled the [...]