When creating a new subfolder under Inbox Outlook freezes up. Have to end task and reopen Outlook. Once I reopen Outlook the subfolder is there. I can create a subfolder under any other main folder without the lock up, and can create a subfolder via the web interface for Outlook with no issue at all. Have created a new profile, deleted .ost files and let them rebuild and have uninstalled and installed Office. The problem is still the same. Any ideas?

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What bit depth Office are you running?
We crossed over to 64-bit being the preferred, though I have been using 64-bit for a while (an Excel preference).