You may have a damaged identity especially if it is the default Main
Identity. File | Identity | Add New Identity. Create a new one and test it.
If all is well, you can import your messages and Address Book from the old
identity and delete it.

How to Create and Use Identities in Outlook Express
http://support.microsoft.com/?kbid=209169
--
Bruce Hagen
MS-MVP Outlook Express
~IB-CA~

"Dusty Tyukody" wrote in message
...
At some point in the last few months I have not been able to create
additional local folders to organize my read and saved emails. Any
suggestions on how to resolve this? Thank you.

Dusty