I noticed that my IMAP account was having issues with my upgrade from Microsoft Outlook 2007 to Microsoft Outlook 2010. I was trying to delete emails and was receiving this error message.
Deleted items folder is unavailable
Below are the steps to fix this problem.
Step 1
Launch Microsoft Outlook 2010.

Step 2
Go up to File, click on Account Settings, and the select “Account Settings”.

Step 3
Make sure your IMAP account is selected if you have multiple email accounts and click “Change.”

Step 4
Click on “More Settings.”

Step 5
Click on the “Deleted Items” tab, click on your Inbox, and make a new folder called “Deleted.”

Step 6
Click “OK”, cancel, and close. Your finished. You can also do the same thing with the “Sent Items” folder.






