Is the following the procedure you followed?
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Originally Posted by Microsoft
Import Favorites to Internet Explorer 8 - In Internet Explorer, click Favorites, click the down-arrow next to Add to Favorites, and then click Import and Export.
- Click Import from a file, and then click Next.
- Click to select the Favorites check box, and then click Next.
- By default, Internet Explorer creates a Bookmark.htm file in your Documents folder. However, you can import favorites that are saved under another name. To do this, click Browse, select a file or type a location and file name, and then click Next.
- Select the folder where you want to put the imported bookmarks, and then click Import.
- Click Finish.
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