All incoming mail goes to Deleted Items Folder

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Version: 2008
Operating System: Mac OS X 10.5 (Leopard)
Processor: intel
Email Client: pop

Build 12.0.0.0 (071130)

All incoming mail goes to Deleted Items Folder - I believe but maybe it's a coincidence - this only started to happen on a POP account after I had edited a POP rule and added another criterion to the rule

I have deleted all rules
I deleted all my POP and IMAP accounts - and recreated them - same result
I deleted the Rules folder in Microsoft User Data->Office 2008 Identities->Main Identity

And while junk mail continues to go to Junk - all other incoming mail whether it's going to multiple POP accounts or even my IMAP accounts, ends up in Deleted Items

Thanks
.

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