We were spending a few minutes with the just announced HTC Magic last night, and we noticed one bit in the live folders screen we hadn’t seen before: YouTube Favorites. Live folders are a new addition to Cupcake which allow you to add self-updating folder to the homescreen. Previously, we’d only seen the first three on the list in the screenshot above: All Contacts, Contacts with Phone numbers, and Starred Contacts. The YouTube Favorites live folder, as you probably could guess, pulls your favorites from your YouTube account and makes them accessible with just 2 clicks. It’s the first non-contact-related Live Folder we’ve seen so far – and the one that seems the most useful, as well.