Outlook 2003 favorite folders issue

[Sixpac_XP]

I am having an issue with the saving of the items in my Outlook 2003 favorite folder.

I can add remove items from the Favorite Folders but when I shut down Outlook 2003 and open it back up it reverts back to default and I have to add them back.

I am running Outlook 2003 (office 2003 pro with all updates) on a Windows XP SP2 machine (with all updates).

Any suggestions?