Quote:
Beware the hidden Local Settings folder
The hidden folder Local Settings is part of the profile. Applications typically use this folder for nonessential, yet sometimes useful data such as temporary Internet files, Internet Explorer history, and other temporary (temp) files (Figure B). Outlook also defaults to using the Local Settings folder to store the archive, Hotmail, and other .pst files.
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From this, I'm guessing you need to put it back the way it was, if possible, or maybe change the directory your temporary internet files go into if not.
-willie