Creating a Personal Folder in Outlook 98
Step 1.
Go to the Tools menu and select Services...
Step 2.
Select Personal Folders from the available information services and click the OK button
Step 3.
In the File name: box you will see *.pst highlighted. Substitute a name for the * - a logical choice would be your name.
Step 4.
You have an option here of entering a password. If you think you are going to store any confidential messages in your personal folders you would be well advised to add a password. You need to type the password twice (to make sure you do not make a typo) and then you will probably wish to check the Save this password in your password list box. Otherwise you will have to enter this password every time you open Outlook. Make sure to make a note of the password somewhere secure. This is not a password that anyone else will be able to reset for you! Whether or not you enter a password, click the OK button.
Step 5.
You should now see your Personal Folders. They may have a + symbol in front of them. That indicates that folders are hidden. Clicking on the + will reveal any hidden folders. You can now create new folders in your Personal Folders section and then drag messages directly into those folders out of your Inbox. [I don't see that Folder List section in the picture - what's happening? | I don't know how to create a new folder in the Personal Folders section]
If your version of Outlook does not show the Folder List, as in the picture above, go to the View menu and select Folder List.
Creating a new folder in the Personal Folders section
Right-click the words Personal Folders and select New Folder... from the pop-up menu. A new folder will be created (make sure to expand your Personal Folders section by clicking the plus if need be). You can name it by typing the new name when it is first highlighted or by right-clicking it and selecting Rename...
