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I think I've solved the problem I outlined in my OP. I've converted the pst file from ANSI (97-2002) format to Unicode. Now I no longer get that Mail Delivery Location error message. I think I'm starting to understand what's happened historically. Two years ago I changed from using email via...

At home I run Outlook 2007 on a standalone Windows 7 laptop. Up until today I had two outlook.com accounts which I synced to Outlook 2007 with the Outlook/Hotmail connector. All worked well. A few weeks ago I got an email message from Microsoft explaining about how my accounts would become...