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Windows Mobile Device Center causes errors for XMarks

When using Windows Mobile Device Center to sync a Windows Mobile phone, it creates and takes control over an Internet Explorer Favorites folder called "Mobile Favorites." Even if you turn off the option to sync Mobile Favorites, the folder is still created. When this folder exists, XMarks for IE will not sync properly. It gives me this error message:



Using Windows 7 64-bit with IE 8 32-bit.
 
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