Update:
I searched for additional information on your problem, in case my first suggestion doesn't help. I found the following at
InsideOE - Store folder:
Close OE
Delete the DeletedItems.dbx file.
When you restart OE, your Deleted Items Folder should be recreated.
I'm not sure of the exact path to locate your file on Win98 as I have WinXP Pro and I don't believe you can locate it in exactly the same place mine is stored. The locations, from the above site are:
1. C:\Windows\Application Data\Outlook Express\{GUID}
I found nothing in this folder in my WinXP. I think this is where you will find your Deleted Items.dbx file.
or
2. C:\Documents and Settings\<User>\Local Settings\Application Data\Identities\{GUID}\Microsoft\Outlook Express
This is where my Deleted Items.dbx file is located.
I haven't actually tried this, so I can't say for sure that it will work. According to Inside OE, the instructions
will work, but I can't absolutely recommend it since I don't have first hand knowledge. That's not to say it's bad information, I just can't say unequivocally that it absolutely works.
I hope one of these works for you.
Rose