I quickly hit upon the problem file, "outcmd.dat". Move this out restart Outlook everythings fine.
Suggestion: Microsoft please provide a method to backup EVERYTHING involved with Outlook including toolbar settings, account settings and email, etc.
Some interesting Outlook sites:
http://www.outlookcode.com/
***NOTE: I found after fixing the problem that Sue Mosher documented that sometimes that this file does become corrupted [thread from 2003].
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