Public Folder Favorites - folder refresh

This may be a misunderstanding of the functionality of the Favorites option for Public Folders...

We have extensive folder branches, so I'm using the Favorites option to make for easier navigation.

However, I noticed that when I move a subfolder from one folder favorite to another, the folder list isn't updated for either folder.

I tried doing the same thing from the actual public folder (which I have appropriate access to), and it still doesn't update the favorites folder. Am I misunderstanding how this works? I was hoping the Favorites folders worked similarly to shortcuts...

Thanks,
Jill.

btw - Outlook 2003