You'll have to ask in an Outlook Express newsgroup. Outlook Express is part
of Internet Explorer and not Microsoft Office, which this newsgroup supports.

Choose your version of OE from here:

http://www.microsoft.com/windows/ie/dgbrowser/en-us/default.mspx

Make sure when you post to them you include the version of OE, any error
messages and/or numbers, when the problem started happening, and if OE ever
worked properly for you.  

Sounds like you have been infected and/or hacked. OE did not create a folder.
The virus, malware or worm did. OE is not covered here in this Office forum.
You'll need to research this further at your Antivirus' web site and post in
an outlook express forum. Run your antivirus and anti spyware right now and
delete the folder and all emails in it.