For anyone running into this issue, her are the steps I followed to resolve:
1. Create a new .pst file
a. On the File menu, point to New, and then click Outlook Data
File.
b. Type a unique name for the new .pst file.
c. Type a Display name for the .pst file and then click ok.
d. On the File menu, click Exit to quit Outlook.
2. Copy existing Calendar, Contacts, and Task Items to the new
..pst
a. Open Outlook
b. In the Folder List, right-click the old Calendar folder, and
then click Copy Calendar
c. In the Copy Folder dialog box, click the Personal Folders
file that you named in step 1c, and then click OK.
d. Repeat steps 2a and 2b for the Contacts folder and for the
Tasks folder.
3. Copy all desired Mail folders to the new .pst
a. In the Folder List, right-click the first mail folder in the
old .pst file and then click Copy <folder name>.
b. In the Copy Folder dialog box, click the Personal Folders
file that you named in step 1c, and then click OK.
c. Repeat steps 2a and 2b for each remaining mail folder that
you wish to copy into the new .pst.
4. Set the new .pst file's Contact, Calendar, Mail, and Task
folders as the defaults
a. On the Tools menu, point to Email Accounts, and then select
View or change existing email accounts. Click Next.
b. On the E-mail Accounts window, in the Deliver new e-mail to
the following location drop-down, select the Personal Folders file that you
named in step 1c. Click Finish.
5. Remove the old .pst file from the profile
a. On the File menu, click Exit to quit Outlook.
b. Launch Task Manager and verify that the Outlook.Exe process
is not running. If it is, select it and click End Process.
c. Launch Control Panel (in Classic View) and click Mail.
d. In the Mail Setup - Outlook window click the Show Profiles
button.
e. In the Mail window click the default profile and click the
Properties button.
f. Click the Data Files button. Select the old Personal
Folders file and click Remove. Close out of the Mail applet.
g. If desired, delete the old .pst file from the hard drive.
6. Open Outlook. You should now be using your new .pst file and
there should no longer be a problem deleting items.