Ok, so whenever i try to start a new email in office outlook (through either reply, reply all or new email) the program simply freezes up. the hourglass cursor comes on and it never opens the dialog box.

does anyone know what the issue is here and if there is a simple method of rectifying it without re-installing outlook?

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Get Windows Mail, I don't know if it's compatible with XP or not. If that fails, get Mozilla Thunderbird. I've always had a problem with Outlook. Sorry my answer didn't help you in the least bit.
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^^Too bad I can't do this in real life