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After closing down Outlook Express I find a new folder on my desktop!
The new folder is named ~ Any ideas where this came from?

Microsoft Knowledge Base doesn't confirm this, but users report that the tilde file you describe is actually a misplaced backup of your Outlook Express address book. The main address book is a file whose extension is .wab and whose filename is your user name (for example, Neil.wab). Use the Find/Search option in the Start menu to locate this file. In the same folder, you should find a file with the same name and the extension .wa~. This is the address book backup file. If the file's date/time stamp is relatively old, this suggests that it's not getting updated properly.
To confirm this, move the tilde file from the desktop into the same folder as the main address book. Rename it to Testing.wab and double-click on it to launch it. Does it load correctly in the Address Book applet? Does it show all of your contacts, or at least all but the most recent? If so, it is an errant copy of your address book backup file. Delete the old backup file (the one with extension .wa~), and rename the file to the backup file's name. Repeat this process when the tilde file reappears. Sooner or later, Microsoft will fix the bug that causes the address book backup to be saved incorrectly.

By the way, this usually occurs if you run Outlook Express from a shortcut on the desktop. Just thought I'd let you know...
James ;)

gutbucket, The link below explains the "tilde" (~) file on your desktop.
What is the Tilde (~) file that appears on Desktop
Tufenuf

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