Yeah, the links  list is appropriately named FAVORITES, intuitive?

Here is the directory  you need: \TEMPLATE\1033\Site Definition\LISTS\FAVORITE (look in your desired site definition)

And here are some resources in case you haven’t seen these yet:

andrewconnell.com/.../...sListOpenInNewWindow.aspx

mindsharpblogs.com/.../654.aspx

www.sharepointblogs.com/.../5027.aspx

wss.collutions.com/Lists/FAQ/DispForm.aspx?ID=254

Ok i went to template\1033\sts\list\favorite\allitems.aspx

Opend the file  and it looks nothing like it should. I have over 15
links already listed. If i view source and copy and paste into
dreamweaver its the exact page. If i open  the actualy allitems.aspx
file its just looks like the temaplate for the page. only readable
letters are Select a view.

Where if anywhere would i modify this page  to make the links  open in
a new page?

Editing the template page  will not show you what is actually in the list itself. It is merely the template that the page you are looking at is derived from.

To add an option to open  the link in a new window, check out Andrew Connells blog andrewconnell.com/.../...slistopeninnewwindow.aspx

I've implemented this way and it works fine. You probably don't want to have "every" link open in a new window  so adding this option is basically adding an attribute to the list item, which just happens to be a link. This requires editing the schema.xml file  for the list so be diligent when doing this - error in the schema.xml file will not be pretty.

There is one for lists  items mindsharpblogs.com/.../654.aspx

Well the file  looks exactly like it should. The file is a part of the site definition. A site definition is the framework that a site is based on. It defines what a site will look like and consist of, for every site that uses that site definition. It defines things like the header going across the top of the page, and that the site will have Document Library, Events and links  available for web part creation. After you create a site, all of the content you create is stored in the content database and will not appear in the site definition file. There is only one copy of AllItems.aspx on your server, regardless of how many sites you actually have created. I hope this is making sense, there is a lot of documentation out there about site definitions (you can start here: heathersolomon.com/.../resources.aspx#03TDT).

You can certainly modify your site to open  links in a new window, and the 4 links I sent have 4 different ways to do it. It all depends on whether or not you want to alter the behavior for ALL links lists, or just one links list on one site.

This one creates a new list definition (similar to a site definition, defines a list and the actual content is store in the database) so you can have a links web part that allows for opening links in a new window:

andrewconnell.com/.../...sListOpenInNewWindow.aspx

These effect a single site:
mindsharpblogs.com/.../654.aspx
www.sharepointblogs.com/.../5027.aspx
wss.collutions.com/Lists/FAQ/DispForm.aspx?ID=254