OK, I resolved #2. In Outlook goto Tools->Options->Maintenace tab-> check "Purge Deleted Messages when leaving IMAP folders"

Still cannot delete/rename folders. Here's my IMAP log. Any ideas? Thanks

----------------------------------------------- Microsoft Internet Messaging API 5.50.4522.1200 IMAP Log started at 11/15/2001 21:49:46 IMAP: 21:49:46 [db] Connecting to 'somehost.somedomain.com' on port 143. IMAP: 21:49:46 [db] OnNotify: asOld = 0, asNew = 4, ae = 0 IMAP: 21:49:46 [db] OnNotify: asOld = 4, asNew = 5, ae = 2 IMAP: 21:49:47 [db] OnNotify: asOld = 5, asNew = 5, ae = 4 IMAP: 21:49:47 [db] OnNotify: asOld = 5, asNew = 5, ae = 3 IMAP: 21:49:47 [rx] * OK Courier-IMAP ready. Copyright 1998-2001 Double Precision, Inc. See COPYING for distribution information. IMAP: 21:49:47 [tx] 0009 CAPABILITY IMAP: 21:49:47 [db] OnNotify: asOld = 5, asNew = 5, ae = 3 IMAP: 21:49:47 [rx] * CAPABILITY IMAP4rev1 CHILDREN NAMESPACE THREAD=ORDEREDSUBJECT THREAD=REFERENCES SORT STARTTLS IMAP: 21:49:47 [rx] 0009 OK CAPABILITY completed IMAP: 21:49:47 [tx] LOGIN command sent IMAP: 21:49:47 [db] OnNotify: asOld = 5, asNew = 5, ae = 3 IMAP: 21:49:47 [rx] 000A OK LOGIN Ok. IMAP: 21:49:47 [tx] 000B DELETE "Inbox.Trash" IMAP: 21:49:47 [db] OnNotify: asOld = 5, asNew = 5, ae = 3 IMAP: 21:49:47 [rx] 000B NO Cannot delete this folder.