The Problem is WinFax. I have experienced it on two of my pc's. You can un-install WinFax and the problem will go away (tested and verified on both pc's). However if you want to re-install WinFax you will have to clean-up multiple registry entries (otherwise Winfax will error out, stating that you have a previous version installed)and you will then still have the same problem. I'm running XP pro, Office 2003, Act 6, WinFax 10.02, all patches and upgrades, and the problem seems to only be with Winfax and Outlook - JJM