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This issue may occur when the temporary Internet files folder is stored on a server on which you do not have sufficient permissions.
To resolve this issue, force Outlook to use a specific folder for temporary files. Modify the relevant Windows Registry key as follows

Outlook 2003

 

// If you are using Outlook 2003, follow these steps:

  1. Click My Computer, and then double-click
    drive C.
  2. On the File menu, click New, and then click Folder.
  3. Name the folder temp0.
  4. Click Start, click Run, type regedit, and then
    click OK.
  5. Locate and then click the following registry key:
    HKEY_CURRENT_USER\Software\Microsoft\Office\11.0\Outlook\Security\
  6. In the right pane, double-click OutlookSecureTempFolder.
  7. In the Value Data field, type C:\temp0\ and then click OK.
  8. Exit Registry Editor.
  9. Restart the computer.

Outlook 2010 If you are using Outlook 2010,
follow these steps:

  1. Click My Computer, and then double-click
    drive C.
  2. On the File menu, click New, and then click Folder.
  3. Name the folder temp0.
  4. Click Start, click Run, type regedit, and then
    click OK.
  5. Locate and then click the following registry key:
    HKEY_CURRENT_USER\Software\Microsoft\Office\14.0\Outlook\Security\
  6. In the right pane, double-click OutlookSecureTempFolder.
  7. In the Value Data field, type C:\temp0\ and then click OK.
  8. Exit Registry Editor.
  9. Restart the computer.
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