Changed the option to "Show number of unread items" and the issue On the General tab of the properties window, the option was set to "Show total number of items". Checked the properties of those affected folders from Outlook. Checked those folders in OWA, and noticed that they weren't showing as "Unread" in there. I had tested with a new mail profile on Outlook 2007 and still had the same issue. Eventhough all the emails were read, it was still showing number beside it and the folder name was bolded as if those emails are unread. The problem appeared on several folders after the user moved those folders around. I know this is a very old thread, but just posting a reply in case it helps others because I had a user with exact same issue and it was resolved.
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