No and No... at least internally. That is intentional though as I felt that users might not want their fav lists in a special order. To change the order open the favorites.lst in the lists folder and rearrage the games. This particular list is NEVER regenerated, so you'll only have to do it once.
Now that you bring it up though I guess I could add a simple "organize favorites" option in the menu. I'll look into it.
Hope that helps.
HAC