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Ok, haven't been able to find any answers to this so far, so thought I'd see if anyone else had any ideas.  I have a user that we just recently setup to use imap with mail.msu.edu in outlook (previously she'd been just using the web interface).  However, we're having an issue with some folders that in outlook are giving a message: "Cannot display the folder. The folder 'blah' cannot contain items.  This is most likely a limitation of your IMAP server.  In order to create a folder that can contain items, be sure not to append '.' to its name as you create it."

Basically, in outlook the structure is looking like this:
Inbox
-PSY
 -sub folder of psy
 -sub folder 2 of psy
-test
 -sub folder of test

(PSY shows up as a subfolder of Inbox, and then has 2 subfolders under that.)

Mail in inbox shows up fine.  When you click on the folder PSY, it gives the error message (on the web interface, there is mail in this folder).  Both of the subfolders work fine.  This error seems to happen mostly when there's 2 or more subfolders to a folder, so in the above example, clicking on test works fine.  It's not consistent though, there's a couple of her folders that have 1 subfolder that also give the error message.

Anyone have any thoughts?

Thanks,
Gary