Directory rename will rename the other one

1- I have got folder called Favorite, on partition D (D:\Foverite) , and I have another folder called Archive on partition D as well (D:\Archive).

2- Inside the Archive folder I have got another folder called Favorite (D:\Archive\Favorite).

3- When I try to rename (D:\Archive\Favorite) to (D:\Archive\LaptopFavorite), the one which is on (D:\Foverite) changes to LaptopFoverite as well (from D:\Favorite to (D:\LaptopFavorite

Where is the problem ?

OS XP Professional with SP2

I'd possibly check in TweakUI/My Computer/Folder: Favorites, see which directory your favorites are set to, and make sure you're not using Junctions which possibly could cause something like this. Though can't say I've heard of it before...