This step-by-step article describes how to create personal folders for a user. Personal folders are stored in a file on the user's computer. This file has a .pst file name extension. If a user has personal folders, mail that comes to the user's Inbox is no longer stored on the server.
Start Outlook by clicking the desktop icon for Outlook.
On the Tools menu, click Options.
In the Options dialog box, click the Mail Setup tab, and then click Data Files.
In the Outlook Data Files dialog box, click Add.
In the New Outlook Data Files dialog box, click OK.
Under Create or Open Outlook Data File, in the File Name box, type the name of the personal folder that you want to create, and then click OK.
If you create a new .pst file, the Create Microsoft Personal Folders dialog box appears. The File box shows the full path to the file that you created in step 6. You can change the identifier name in the Name box.
If necessary, click an option for encryption and set a password on the .pst file, and then click OK to display the personal folder in the Outlook Data Files list.
If you want to change the password, add a comment, or compact the file, select the folder that you want to change, click Settings, make the changes, and then click OK.