You can use Profiles on the 360 box to set up the EPG in a way that allows you to control exactly what you see listed for channels. The 'Shared' profile will always show all channels.
To set up favourites you have to create a profile or profiles. Each profile can set up their own set of favourite channels. Go via the settings menu, or press the profile button on the side of the remote control.
Select the profile (or the big + sign to add a new profile) Select the pen symbol under the profile name (or go through the new profile set up if you selected the +) Go to manage channels (or select Create List if you just created a profile) Select each channel you want by pressing OK (you should get a heart symbol next to the channel) Once you have at least 3 channels, pressing the back button (the bottom left symbol under the OK circle on the remote) will save them.
You can view your favourites by pressing the profile button on the side of the remote and selecting your profile.
If you want your favourites to be there by default all the time then go to Settings > Profiles > Default Profile on Start Up and select your profile. That way, when you use the box only your favourites will show in the channel list and guide.
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As capital letters are classed as shouting I assume you couldn't follow the on screen instructions after pressing the profiles button and selecting the new option, something my 2 grand daughters managed to do aged 10 and 12.