1. Using REGEDIT.EXE locate the following key:
My Computer\HKEY_CURRENT_USER\Software\Microsoft\Office\11.0\Security
2. Modify the Key "OutlookSecureTempFolder", by replacing "Temporary Internet Files" with "Temp". For example:
OLD VALUE: C:\Documents and Settings\username\Local Settings\Temporary Internet Files\OLKxxx\
NEW VALUE: C:\Documents and Settings\username\Local Settings\Temp\OLKxxx\
(xxx will be a number specific to your setup)
3. Restart Microsoft Outlook.