The below procedure tested on winxp and outlook2003.
Sometimes an OST file becomes corrupted beyond repair or repair is not desirable. In this case, it can be deleted. After it had been deleted, you may need to recreate it as a new file as described above before Outlook will work properly.
• Quit Outlook if it is running.
• From the Start menu, go to Run.
• In the Run window, enter this command in the “Open:” field and click OK:
o “%USERPROFILE%\Local Settings\Application Data\Microsoft\Outlook\”
To find the exact path, please follow the steps 1-4 for Outlook 2002/2003/2007 or steps 1-3 for Outlook 2000 outlined above to get to Offline Folder File Settings. You can find the .ost file location in the File box. You may want to cut-and-paste that information for accuracy and ease.
• In the Explorer window, locate the OST file to deleted. Select it and press delete on your keyboard or use the Delete icon on the toolbar