MacOS – How to add Applications to Favorites in Finder’ Sidebar

On Lion, items that cannot be removed from the sidebar are usually listed under "Devices" or "Shared" (there are Snow Leopard counterparts to these as well). If you'd rather not see these items in the sidebar, you can remove them by following these steps.

1. With Finder focused, visit Finder->Preferences or ⌘, and select the Sidebar tab.

2. Uncheck items that you don't want shown in the sidebar

I fixed this by changing the permissions on the DFS Namespace share. After allowing the proper group write permissions, the Finder Windows now save their settings properly.