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Display of Folders in Live Mail

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I just installed Live Mail on a new machine running 8.1. It seems to be receiving messages OK but when I create a folder and add a message to it the display does not update to show the new folder. Presumably it should appear below deleted items. The new folder name does appear as an option if I select another message to move. Can you please advise how I get these folders to display properly. Also is it possible to transfer folders from Outlook Express on my previous machine and if so how can I do it.

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