Just to make sure -- did you create that Favs soup using the Add Soup Playlist menu item, or did you create it "by hand" by setting the soup tag?
Also -- I can't see the full soup definition -- can you copy/paste from the advanced tags view so I can see what the search is?
Can you do a test, too? With the Favs soup hooked up, go and modify the tags of another song that isn't currently doesn't match the criteria of the soup and change them so they do. This _should_ cause the tune to appear in the soup in the appropriate place (I did this on 45 and it works). This will narrow down whether it's an import issue or a soup matching issue.
ms