This problem occurs when you are using a POP3 email account, and the default delivery location for this account references a nonexistent folder.
Note This problem may occur most frequently when you have a Microsoft Exchange Server mailbox and a POP3 account in the same profile. However, this problem can also occur if you do not have an Exchange Server mailbox in your profile.
To resolve this problem, update your POP3 email account to reference a valid folder. To do this, follow these steps:
Exit Outlook if it is running.
In the Mail control panel, click Show Profiles.
In the Mail dialog box, select your Outlook profile that has the POP3 account, and then click Properties.
In the Mail Setup dialog box, click E-mail Accounts.
In the E-mail Accounts section of the Account Settings dialog box, on the E-mail tab, select your POP3 account, and then click Change Folder. (The screen shot for this step is listed below).
In the New E-mail Delivery Location dialog box, select the folder in which new email messages are to be delivered, and then click OK. (The screen shot for this step is listed below).
Note The typical delivery location for new email messages is your Inbox folder.