Ominx,
Edit - Preferences - Configs - Prefs
Add the following line:
user_pref("kmeleon.plugins.favorites.title", "");
Click "OK" - Click "Yes" to save the changes. Restart the browser.
Preference changes will stick if you have upgraded with the Service Pack.
This preference and all the other new ones implemented by the Service Pack are covered here:
http://kmeleon.sourceforge.net/docs/newprefs.php
we still need to add details but most people should be able to work those out.