Is this Windows XP as well?  See if the following steps help:

Try the following steps (note, these steps involve making changes to the
registry...make sure you have a good backup of the registry before trying
these steps.)  Also, these steps say they are for Outlook Express, but
should also work for Outlook.

1. Quit all programs.

2. Click Start, click Run, type regedt32 in the Open box, and then click
OK.

3. Locate and click the following registry key:
HKEY_CURRENT_USER\Software\Microsoft\Protected Storage System Provider

4. On the EDIT (security menu in win 2k) menu, click Permissions.

5. Click the registry key for the user that is currently logged on and
ensure   that Read and Full Control are both set to Allow.

6. Click the Advanced button, ensure that user that is currently logged on
is   selected, that Full Control is listed in the Permissions column, and
that   "This Key and Subkeys" is listed in the Apply to column.

7. Click to select the "Reset permissions on all child objects and enable
propagation of inheritable permissions" check box.

8. Click Apply, and then click Yes when you are prompted to continue.

9. Click OK, and then click OK.

10. Double-click the Protected Storage System Provider key to expand the
key,   click the user subkey folder that is directly below the Protected
Storage   System Provider key, click Delete on the Edit menu, and then
click
Yes in   the warning message dialog box.    The user subkey folder looks
similar to the following example:
S-1-5-21-124525095-708259637-1543119021-16701

NOTE: For every identity that you have, there will be a subkey under the
Protected Storage System Provider key. To resolve this problem in all of
your identities, you must delete all of the user subkeys folders under the
Protected Storage System Provider key.

11. On the Registry menu, click Exit, and then restart your computer.

How to Re-Enter Your Password:

1. Click Start, point to Settings, and then click Control Panel.

2. Double-click Mail or "Mail and Fax".

3. Click to select Internet E-mail, and then click Properties.

4. On the Server tab, type your password in the Password box, and then
click
to select the "Remember password" dialog box.

5. Click OK, and then click Close.

6. Close Control Panel, and then start Outlook Express.

7. On the Tools menu, click "Send and Receive" to test if your password is
retained.






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