You need to be logged in to your Lounge account.
Select either the name of your radio or a sub-folder you may have created the favourite in from the column on the left hand side of the screen.
Place a tick in the check box next to the name of the favourite you want to remove (you can tick more than one if you wish) and click the 'Delete Selected' button (in the top right of the screen).
You can use the same principle for moving your favourites from one folder location to another. Place a tick in the check box next to the name of the favourite you want to move, and choose the new location from the drop down box in the top right hand corner. Click 'Move to folder' to complete the move.