sharepoint and outlook 2010 and a mising .pst file

I upgraded from XP and office 2007 to W7 Ult. and Office 2010.
Now where I try to open my "Share Point List' folder in outlook it gives me an error message.

C:\users\<username.domain>\appdata\local\microsoft\outlook\sharepointlists(2).pst is not valid.

On our sharepoint intranet site I did click on the "Connect to outlook" droop down but nothing seems to happen.
Is there a compatibility issue?
GoHuskersAsked:
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snurkerCommented:
When you go under File>Account Settings>SharePoint LIsts, are there any listings? If so, remove all and then readd the sharepoint site through the "Connect to Outlook". ou shoudl then see teh Sharepoint Lists folder on your "Inbox" screen.
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GoHuskersAuthor Commented:
not sure how but just by looking at your sugested settings it came alive and started working.
Who knows sometimes  :-)
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