Butterflywing....Are you sure you're not talking about "favorite"???? That's not in the hotmail account...that's on your internet service provider. Since I changed to IE8 that has changed for me. Favorites is where you click on a favorite web page and you can go back to that to find that page without having to search.
See if this is what you're talking about...
Go to the top on your menu......and click on FAVORITES. In that you will see "organize favorites"....That is where you can move things around. Unfortuantely it seems that sometimes they automatically switch to alphabetical order and other times it seems to just put the latest one on the bottom.
Hope this is it...if not, let us know -- I'll try something else.
dee