When you press "Watch TV", the next screen shows the custom buttons on the screen (for extra TV, AMP, ect. functions). You then have to press the "Media" button on the remote to get the Favorite channels screen to come up.

On the 880 and 890 at least, you can have 2 screens worth of channels, with 8 favorite channels per screen, for a total of 16 favorite channels.

Also, for channel logos, go to this website. A very nice person made up a whole bunch of channel logos for people to use, other wise you have to make your own file. Works with 880 and 890 (US and Canada). I'm not sure that these work with any other model. Has most cable and HD channels.
[Link: squareworld.com]