Hmm. This wasn't easy, but I think I've diagnosed your problem, SQD.
You're using Outlook Express. Also known as The Glitchiest Mainstream Email Program In Existance.
As with most Microsoft products, OE is riddled with flaws, and must often be creatively tricked into doing what it's supposed to. It is also, to my knowledge, the mail program most vulnerable to viruses. There have been entire crops of viruses tailored specifically to work on OE.
I recommend using a different mail program. Personally, I like
Eudora (my school has a site liscense, but even the free version is good), but go with what works for you. It probably won't help you get the stuff back that you lost (it
may be able to import the old messages), but it will serve you much better in the future.
<shrug> That's my $0.02.
Paul