It has been done by our system administrator. We are using outlook with MS exchange server to read e-mail from our laptop. Somhow sys-admin set-up our laptop so that we can't create any pst file under outlook locally and direct incoming e-mails into pst file.
When opening MAIL Set-up -> Data Files -> Add, there is window of New Outlook Data File pop-up and no select under Types of storage and only available key to click is CANCEL.
I removed entire MS office and re-installed it. It still stays the same. Guess it has sth to do with the XP account.
ANy one knows how to make XP behaving like this and how to remove it so that we can use pst file.