I'm going to elaborate on what Spectre said:
When you go to import favorites into Mozilla the 'open dialog' isn't looking for favorite files - it's looking for a hypertext file with a bunch of links in it.
There's an option in IE to export your favorites to such a file.
So just export them to your desktop (which will make a bookmarks.html file)
and then just import it with Mozilla!
Weee - all good stuff!
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