There is a limit, yes, but it's pretty high. How many folders do you
have already? Is this a PST file you brought with you from a previous
version of Outlook or was it created new in Outlook 2003?
Do you have an Exchange Server?
--
-Ben-
Ben M. Schorr, MVP
Roland Schorr & Tower
http://www.rolandschorr.com
http://www.officeforlawyers.com
Author - The Lawyer's Guide to Microsoft Outlook 2007:
http://tinyurl.com/5m3f5q
The folders were created new in this version. And yes I am on a server. I currently have about 200 or so folders. Is that a lot?