Frenchy wrote:

I am running Office 2007 on Vista Ultimate. I have all hidden folders
to show and there is no such folder as content.outlook and nor the
next alpha numeric folder.

Windows Explorer has code in it to prevent being able to see that folder by
traversing the folder tree. Manually enter the path into the Address bar
and you should be able to see it.

I have changed it to point to a specially made new folder, but that
has done nothing for the red x problem. Note the new folder remains
empty after an hour of opening and closing attachments in Outlook 2007

Did you stop and restart Outlook after making the change?
--
Brian Tillman [MVP-Outlook]