Before you do anything else, close Outlook.
You should now see that the original folder was re-created again.
Fix For Outlook 2007 Constantly Asking for Password on Vista
If you are encountering an infuriating problem where Outlook constantly asks you for your password even though you check the "Remember my password" box every single time, then you are in luck because reader Malcolm wrote in with this tip on how to fix the problem.
