When the folder names in Outlook are cut off or otherwise look weird, it's usually the result of the Windows theme you're using and it's easy to verify the problem is theme related - switch to the default theme and see if the problem is solved.

A color scheme that uses larger fonts is usually the culprit and restoring the default theme (or using smaller fonts) will fix it. In fact, any time dialogs don't look "right" or buttons and text are missing or partially hidden, it's usually caused by your scheme.

Using a Windows theme not installed by Windows XP (including themes downloaded from Microsoft.com for Media Center and Tablet PC) may result in display issues both with dialogs and menu color schemes in some programs.