This issue is far more complex than it need to be. You have 1 of 2 problems.
No1. http://support.microsoft.com/kb/q148925/
No.2 and more likely is that your Email server has miscommunicated th number of unread Emails with Outlook.
Try logging onto your Email servers site (your ISP for the...
This problem can occur for one of two reasons.
Reason 1 is a corrupt registry key relating to your saved password list as detailed in the microsoft bulletin http://support.microsoft.com/kb/q148925/ but is often related to your server and outlook being out of sync. Try connecting to your servers...
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