Microsoft Outlook uses a temporary folder to save and open the attachments. By default that folder is:
"C:\Documents and Settings\%USER_NAME%\Local Settings\Temporary Internet Files\OLK#\" (where # is a random number) Some of the latest security updates for Windows 2000 and XP are preventing folders to be created in that folder. The solution is to use the regular TEMP folder.
NOTE for Vista Users: the folders path is changed in Vista to:
"C:\Users\%username%\AppData\Local\Microsoft\Windows\Temporary Internet Files"
1. Use REGEDIT.EXE to locate the following key:
HKEY_CURRENT_USER\Software\Microsoft\Office\11.0\Outlook\Security
(Note: Depending on your version you may have to modify that path after the "Office" key. You may have folders 8.0, 9.0, 10.0, 11.0, go the highest number. This is probably the version that you use.)
2. Modify the Key "OutlookSecureTempFolder", by replacing "Temporary Internet Files" with "Temp". For example:
OLD VALUE: "C:\Documents and Settings\username\Local Settings\Temporary Internet Files\OLK177\"
(Note: There may be a different number than 177)
NEW VALUE: "C:\Documents and Settings\username\Local Settings\Temp\OLK177\"
3. Restart Microsoft Outlook.
Credit goes to JacksonTechnical
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