I have followed the procedure described in "Move an Outlook data file from one computer to another" in Outlook Help, to import my .pst files from my old pc. I can see both the imported folders and the ones that Outlook created when I first installed it, and my incoming email is going to the right inbox. However, I am unable to remove the folders that I no longer need (the "remove" is greyed out when I right click on that folder).
Also, I now have two "contacts" lists (one empty) and it is the empty one which shows in the address book. Not sure how to fix this.

Try removing the folders through the control panel:

1. Close Outlook.
2. Click Start > Control Panel.
3. Click Mail (you may have to change the View By to Small icons or Large icons)
4. Click Data Files.
5. Select the .pst file that you no longer need, and click Remove.

This will remove the .pst file from your Outlook profile, but wont delete it from you computer (just in case you still need it).

Hope this helps.

-SW

Thanks for the suggestion. Actually I solved my problem after posting this thread. In trying to solve my Contacts problem I stumbled across a window where I was invited to define the default documents folder. As soon as I did that, the unwanted one disappeared from the display. Thanks again.