Hi, thanks for replying! I looked at the link you provided, and:

1) I don't have the updates KB2837618 and KB2837643 installed on my system at all.

2) Unchecking the "When displaying hierarchy in Outlook, show only the subscribed folders" option did not fix the issue. In fact, I didn't notice that it changed ANYTHING about the operation of Outlook.

3) Putting INBOX in the Root folder path field causes all my custom folders to disappear, and I can only see Inbox, Outbox and a couple of other system folders; so, this is clearly not an appropriate setting in my case.

Any suggestions?..