If you are using a .pst file as your default delivery location, it may be missing but it exists here with Exchange 2003.

--�
Milly Staples [MVP - Outlook]

Post all replies to the group to keep the discussion intact. All
unsolicited mail sent to my personal account will be deleted without
reading.

After furious head scratching, asked:

| I am also having this same problem. The "add to favorites" seems to
| be gone from Outlook 2007