Hi, If you use Internet Explorer then I.E. also controls Outlook Express. Try to repair I.E. and this should also repair Outlook Express and may solve your problem. Have you tried sending yourself an e-mail so that you can try to see what happens to it??
Thanks for the info. Funnily enough i have recently (2-3 weeks ago) installed IE7. But had no problems with it, or anything else...or so i think.
As for emails - i can send and receive emails as normal, although i have found in the past couple of weeks that Outlook Express has been continually asking for my passwords for my hotmail accounts. This is despite them being saved.
As things stand all my Hotmail folders (and most folders relating to other email addresses i have) are fine. It is just these dozen or so (that i created primarily for storing old Hotmail and other emails that have had the files/emails deleted from them. As the .dbx files that correspond to these folders do not contain the data i'm unsure where else to look. As mention my System Restore isn't working for some reason.
The link that was given to me above (click here) looks like it may be useful.