By default, Windows Server 2008 R2 does not provides Group Policy to disable or turn off Favorites and Libraries feature in Explorer. You can modify registry key to hide them.
Note: Please backup the key first.
For Favorites, the key is:
[HKEY_CLASSES_ROOT\CLSID\{323CA680-C24D-4099-B94D-446DD2D7249E}\ShellFolder]
"Attributes"=dword:a0900100
Changing a0900100 to a9400100 will hide Favorites from Navigation Pane.
For Libraries, the key is:
[HKEY_CLASSES_ROOT\CLSID\{031E4825-7B94-4dc3-B131-E946B44C8DD5}\ShellFolder]
"Attributes"=dword:b080010d
Changing b080010d to b090010d will hide Libraries from Navigation Pane.
Note: You need to take ownership the ShellFolder before changing the value of Attributes.