When I try to compact my outlook express I get an error message that states:

"the folder is currently in use by outlook or another application"

This happens only on a file that I had to fix with a program called OE-Mail Recovery.
This program recovered the .dbx files from the corrupted file.

All the emails were recovered and have been place back to the original folder they were in.
But this folder no longer wants to compact.

I keep getting the error "the folder is currently in use by outlook or another application",
When trying to use the compact feature from outlook express on this folder.

I tried compacting in safe mode, disabling background programs with no success.

Any solutions?

Try this - I use regular Outlook, but these notes came from a power user:
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Click on Outlook Express at the top of the folder tree so no folders are open.
Click on: File | Work Offline (or double click Working Online in the Status Bar).
Click on: File | Folder | Compact all folders. Don't touch anything until the compacting is completed.

If you get it the habit of compacting before the 100th closing, (i.e. once a week, or so), you may never see the prompt again.

Be sure to UNCHECK the Work Offline flag so you go back to working with live email.

Did this work?