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Jegajothy vythilingamFlag for United States of America

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Outlook 2007 - folders Vs leaving in Inbox

My OS is win 7 prof 64 bit and I use Outlook 2007 for my emails.  As I get tons of emails, thus I create separate folders and file them there.  By chance when my Outlook 2007 dropped dead and Microsoft tech support was fixing it, I observed that by using the Group command from the "View", it does the same thing.
The first method of creating folders will get me into problems when I have to recreate my email account, and when outlook tries to download the emails, there are sometimes sync issues and it leads to other issues like emails not going out and also not coming in at all.

My question is, if leaving the emails by groups in the Inbox a good idea?  Are there any Cons for this strategy.  Thank u for your suggestions.
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Thank u for the excellent suggestions.