The tilde (~) file that appears on the Windows desktop for no apparent reason is actually a backup of the Windows Address Book. If you examine the file with notepad, you will see all your addresses. After renaming the file extension, you can also open it with Windows Address Book. The file can safely be deleted, but it will probably return once you edit a contact in the Windows Address Book that OE uses. Besides, the purpose of a backup file is to be able to restore it if needed, so deleting this file may not be the best idea.
This problem began with a bug in [link http://support.microsoft.com/default.aspx?scid=kb;en-us;330994]MS03-014 (Q330994)[/link], the April 2003 Cumulative Patch for Outlook Express and contiues with [link http://support.microsoft.com/default.aspx?kbid=331923]Q331923[/link], the Cumulative Update for OE 6.0 SP1. The original patch can be removed by using Windows Add & Remove Programs to uninstal Q330994, but the more recent Q331923 can not be removed.
There now is a hotfix available, but you need to [link http://support.microsoft.com/default.aspx?scid=fh;en-us;CNTACTMS]contact MS Product Support Services[/link] directly to get it. Alternatively, the official workaround is to drag the file to some other location on your computer where you won't see it. I suggest moving it the the root of the C: drive.
For more info see:
http://support.microsoft.com/default.aspx?scid=kb;EN-US;830921
http://www.windowsbbs.com/showthread.php?s=&threadid=16820
http://insideoe.tomsterdam.com/problems/bugs.htm#~file
Thanks to: linney, bcastner, SESaskDFC, edemiere, slpd13 and others.
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