I will appreciate any feedback on this. Thanks!!

 It's a long story.

 I have couple of IMAP accounts on this machine and one POP account. I had an annoying issue where Hebrew appeared as question marks in the subject line and I could not write in Hebrew in the subject line at all...at the same time Hebrew appears OK in the message body, so it's not that Hebrew is not installed. The strange thing about it is that I have the same configuration in both home pc and office pc, same XP Pro and Office 2003, the home one works fine, the office one doesn't, which leads me to believe that the problem is the existence of IMAP accounts...for some reason that causes the Hebrew not to appear in the subject line.
 So I was told that the problem is with the .pst file (Unicode mode) so I tried to convert the .pst file to unicode mode and it didn't help. When I tried to access all the accounts again I couldn't open the data file, so I had to create a new profile and import everything from the old file...the IMAP are not an issue because it's an IMAP.
 So, bottom line is - it all started after I created the new profile. It worked fine before that.

 Another interesting issue is that one of the IMAP accounts refuse to download all the folders...I have to go to Tools, IMAP Folders, choose this account and only then it synchs with all the folder. So definitely something weird is happening.

 Looks like I'll have to remove Outlook completely and start from scratch, unless you have a better solution for me.

 I appreciate any help. Thanks!!

 --

 "Roady [MVP]" <newsgroups_DELETE_@_DELETE_sparnaaij_NO_._SPAM_net> wrote in message news:213557B6-3C50-4E27-AA4A-285F00241C21@microsoft.com...
 > Hmm, interesting. Which mail account type are you using?
 > What happens when you recreate your mail profile?
 > See http://www.howto-outlook.com/faq/newprofile.htm
 >
 > --
 > Robert Sparnaaij [MVP-Outlook]
 > Coauthor, Configuring Microsoft Outlook 2003
 > http://www.howto-outlook.com/
 > Outlook FAQ, HowTo, Downloads, Add-Ins and more
 >
 > http://www.msoutlook.info/
 > Real World Questions, Real World Answers
 >
 > -----
 >
 > "John" <sbnospam@gmail.com> wrote in message
 > news:ez$oTF4iIHA.1184@TK2MSFTNGP04.phx.gbl...
 >> Thanks, but it doesn't work. When I close Outlook and Open it again the
 >> folders are there, but then immediately after the first "synch", or
 >> send/receive, they are removing themselves from the Favorite Folder pane
 >> right in front of my eyes.
 >>
 >>
 >> "Roady [MVP]" <newsgroups_DELETE_@_DELETE_sparnaaij_NO_._SPAM_net> wrote
 >> in message news:0FCE0DEB-6AE4-4BD0-B8F1-412A045A4AF5@microsoft.com...
 >>> Reset your Navigation Pane;
 >>> Start-> Run; outlook.exe /resetnavpane
 >>>
 >>> --
 >>> Robert Sparnaaij [MVP-Outlook]
 >>> Coauthor, Configuring Microsoft Outlook 2003
 >>> http://www.howto-outlook.com/
 >>> Outlook FAQ, HowTo, Downloads, Add-Ins and more
 >>>
 >>> http://www.msoutlook.info/
 >>> Real World Questions, Real World Answers
 >>>
 >>> -----
 >>>
 >>> "John" <sbnospam@gmail.com> wrote in message
 >>> news:#M1ergriIHA.4684@TK2MSFTNGP06.phx.gbl...
 >>>> Why aren't my folders saved in the Favorite Folders? When I close
 >>>> Outlook (2003 and XP) and re-open they are not there and I have to add
 >>>> them again.
 >>>>
 >>>> Thank you.
 >>>>
 >>
 >>

I doubt that reinstalling Outlook will solve anything.
IMAP in Outlook 2003 doesn't support UNICODE pst-files. It will always
create a ANSI pst-file. Outlook 2007 will produce UNICODE pst-files for IMAP
accounts.

You said you tried to "convert" the ANSI pst-file to UNICODE. By which
method did you do that? Such a method is not supported. You'll have to
create a new pst-file and then move the items from the ANSI formatted
pst-file to the UNICODE formatted pst-file. (of course we are talking about
the pst-file for the POP3 account now.

When you receive a garbled message (subject line), what is the Encoding for
that message set to?
When you send a message to yourself, does it show up correctly?
Also verify your Encoding settings in Tools-> Options-> tab Mail Format->
International Options...

It's a long story.

I have couple of IMAP accounts on this machine and one POP account. I had an
annoying issue where Hebrew appeared as question marks in the subject line
and I could not write in Hebrew in the subject line at all...at the same
time Hebrew appears OK in the message body, so it's not that Hebrew is not
installed. The strange thing about it is that I have the same configuration
in both home pc and office pc, same XP Pro and Office 2003, the home one
works fine, the office one doesn't, which leads me to believe that the
problem is the existence of IMAP accounts...for some reason that causes the
Hebrew not to appear in the subject line.
So I was told that the problem is with the .pst file (Unicode mode) so I
tried to convert the .pst file to unicode mode and it didn't help. When I
tried to access all the accounts again I couldn't open the data file, so I
had to create a new profile and import everything from the old file...the
IMAP are not an issue because it's an IMAP.
So, bottom line is - it all started after I created the new profile. It
worked fine before that.

Another interesting issue is that one of the IMAP accounts refuse to
download all the folders...I have to go to Tools, IMAP Folders, choose this
account and only then it synchs with all the folder. So definitely something
weird is happening.

Looks like I'll have to remove Outlook completely and start from scratch,
unless you have a better solution for me.

I appreciate any help. Thanks!!