Couldn't access the apps folder under my user name as your instructions
would have the brouser looking for the folder.

Also, I failed to mention in my original post that I even tried drag and
drop. Didn't work even though both applications uses the same file extension
(.eml) for mail.

However, I was able to do the following to transfer....

rightclick start -- explorer -- go into Appdata -- Local -- Microsoft --  
Windows Mail -- Local Folders -- Inbox

I then saw all my subfolders. I then went to each folder one by one
selecting all and dragging them from there to my open MS Outlook and
dropping them in the respective folders. I had to have the folders set up
prior to this or I would have had to just drop them into the inbox.

Actually, I wish outlook used the same file storeage as windows mail instead
of the pst. the only reason I want to use outlook is to have a one stop shop
for my mail and calendar.

i thought that you could add news groups to MS Outlook way back as far as
Win98. I thought they only dropped that feature between 00 & 03 Outlooks.
Which mail brouser allowed you to configure MSNBC and Fox? or am I thinking
of something else?

This is in response to your last message:  "Care to create a post that
clearly depicts what you tried and what happens
that the rest of us could interpret?"

Ok,
Everyone agrees Outlook 03 is before Windows Mail so WM will not appear in
the import menu. Therefore, in outlook 03, I clicked on "import and export"
and it's wizard opened. I then selected "Import Internet Mail and Addresses"
and clicked next. I then selected "Microsoft Internet Mail 3.x" and saw
"import mail" and "import address book" boxes were checked and I then hit
next. Import addresses window popped up with radio button "outlook contacts
folder" selected with options "allow duplicates to be created." I hit
finish. The browse for folder pops up. I click on C:, then users, then my
user, and that is all the further I can go because the AppData folder is
hidden. (Status--Failed)

Now,
Knowing I could drag email from outlook browser to a windows folder to save,
I thought of the reverse.
I began by exploring the start button. I scrolled up the folders list on the
left until I saw my user. I clicked to open AppData (actually the same place
where the start button is to explore but in roaming instead of local). I
opened local, then microsoft, then windows mail, then local folders where
the browser folders are. If you don't know windows mail, it is not like a
.pst but windows explorer driven (my layman's terms of explanation**see note
below). Ok, i opened the inbox folder where I saw all my sub folders. I had
preloaded sub folders named the same in outlook 03. I went into each
subfolder, selected all the email files and dragged them to outlook 03
browser and dropped them into their respective folder. (status--partial
success; they copied as files which kept the numeric file name "windows mail
browser interprits the numeric file name back to the original subject" it
had in the explorer folder, changed the date sent to the current date
transferred and changed the sender to me as if I sent them.)

Note: If it weren't for outlook being a one stop shop for task, mail,
calendar, etc., I would keep windows mail because I like the file storage
principles windows mail has and often dreamed of outlook allowing similar
capabilities instead of the .pst database format. You could create a
shortcut from the appdata windows mail folders to a respective documents
folder under the user for files management. It is, in my perspective and
opinion, an quicker system for lazy guys like me. But, I adapt and overcome
and use what I have. Take windows mail and outlook and squish them together
to make a closer to perfect mail browser.

Anyway, I hope this clearly depicts what I have tried and what happens. If
not, I can create a visual for you and send it in the form of powerpoint.