So if I have different folders under the My Shortcuts section of Outlook (the left hand side panel) and I add those folders as Catagories on my BB 8310, they sync and work together?
You can use Desktop Manager to setup folders to be synchronized to the BlackBerry, but they don't become categories, at least not as I understand the term. Categories in Outlook map to Filters in the Address Book, where they can be used to select what contacts are visible.
Mod Note: I made your post a separate thread in the BlackBerry discussion folder, since it didn't fit where you posted it.
