I've added a particular sender to my blocked senders list but the e-mails continue to appear in my inbox as opposed to "Junk Mail".
I've checked the e-mail addresses in the listing of blocked sdenders and it is there. However, the e-mails continue to appear in my in box.
What actions might I be missing?

It sounds like you may have a corrupted Profile. You can use a command swotch to fix it if it is corrupted or a registry is not working correctly.

To run Outlook with a command line switch, use the following steps:
Windows Vista/7:

• Click Start.
• Click All Programs.
• Click Accessories.
• Click Run.
• Enter the following in the Run dialog box (with quotations):
  "c:\program files\microsoft office\office11\Outlook.exe" /cleanprofile
  
  Note: For 64-bit Operating Systems, you will enter the following (with quotations):
  "c:\program files (x86)\microsoft office\office11\Outlook.exe" /Commandswitch
• Click OK.

Hope this helps.