This sounds very unfortunate. I just don't understand where that folder went, however. It might still be around. When you say you moved it to the favorites toolbar, do you mean the sidebar? The Sidebar is on the side of the finder window and it has icons for your hard drive, desktop, home foler, documents, pictures, music etc. Or did you put it at the top of the finder window? Neither of these would have deleted or even physically moved the folder. Have you checked your desktop in case the folder accidentally got moved there?
I have a few more suggestions:
First, download a program called Easyfind. It will search your disk for folders and/or files a bit differently than the built in File Find tool does. When you use Easyfind, it also gives you the option of searching by filename (or folder name) or by contents. Also, the built in File Find program doesn't search every single folder on your Mac. You can tell EasyFind to do that by telling it to search in all "hidden" folders and to search for "hidden" files. This might help if your important folder accidentally got moved to somewhere that File Find doesn't look into when it searches.
If that fails, then you can look into a file recovery program such as FileSalvage or Data Rescue. For these to work best, one should stop using the computer if possible because as you use your computer more, the files will be overwritten more and more. Typically the files still physically exist but the system's file catalog has no way to find them once you empty the trash. These recovery programs scour the disk for such "deleted" files that still may physically exist.
Here's an article that explains how these recovery programs work:
http://www.cultofmac.com/67472/how-to-undelete-files-in-mac-os-x-macrx/
A third option is to pay a file recovery service but that is very expensive, hundreds or thousands of dollars.
I am running out of ideas once you try these things. To avoid this in the future, do obtain a backup disk, or at the minimum get a jump drive for a few dollars and copy your important files to it periodically. My daughter just finished her first year in college and I set her all up with a Time Machine backup drive but she doesn't connect it to her laptop very often, I am always harrassing her to do that, drives me crazy. I symphasize with what you must be going through. If any of the above suggestins works, do post back so others can benefit from your experience. Good luck.