Here's a thought on the 'while' loop, although it's untested:
Code:
on *:dialog:favsetup:init:*: {
  var %l 0
  var %o $lines($mircdirurrl.txt)
  while ( %l <= %o {
    did -a $dname 3 $read($mircdirurrl.txt, %l)
    inc %l 1
  }
}


Hope that this helps,

Listner