I was curious about this so I dug a bit...

In Outlook 2003, click the Chapura Settings button on the toolbar.  You
can also access this from the Tools menu.

Then, select your profile and click "Settings...".  Then, select
"Outlook Tasks" and "Change...".

The first option is "Categories/Folders".  This is pretty
self-explanatory from this point.

You will be limited to 15 folders in Outlook, however.

M!ke

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