Remove "Files" section from "This PC"¹

Delete these subkeys from HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\Current Version\explorer\MyComputer\NameSpace and HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Microsoft\Windows\CurrentVersion\Explorer\MyComputer\NameSpace:

{1CF1260C-4DD0-4ebb-811F-33C572699FDE} (to remove Music folder)
{374DE290-123F-4565-9164-39C4925E467B} (to remove Downloads folder)
{3ADD1653-EB32-4cb0-BBD7-DFA0ABB5ACCA} (to remove Pictures folder)
{A0953C92-50DC-43bf-BE83-3742FED03C9C} (to remove Videos folder)
{A8CDFF1C-4878-43be-B5FD-F8091C1C60D0} (to remove Documents folder)
{B4BFCC3A-DB2C-424C-B029-7FE99A87C641} (to remove Desktop folder)

Move Libraries below Favorites²

Change SortOrderIndex's decimal value from 84 to 56 in:

HKEY_CLASSES_ROOT\CLSID\{031E4825-7B94-4dc3-B131-E946B44C8DD5}
HKEY_CLASSES_ROOT\Wow6432Node\CLSID\{031E4825-7B94-4dc3-B131-E946B44C8DD5}

Windows Win8