Windows 7: Missing sub-folders in Windows Live Mail

Hi all.

I'm having a problem with my folders in Windows Live Mail.

I sync my WLM only with my Hotmail (now outlook) account. (The problem was there before switching to outlook).
I have some missing sub-folders in my folder list. The strange thing is though, I can search and find the mail within the missing folders and the associated info for such mail indicates that it is located in one of the folders I cannot find.
I do not see any way of expanding the parent folders or navigating to the missing mail without doing a specific search for the item.

I have found online suggestions to remove and reinstall my hotmail account. However, many posters report the problem reappearing, so I'd much prefer to find the root of the problem.

Anyone seen this before?

Thanks in advance,

SJ.

Hi SJ,
not sure what you mean in Sub Folders, here's how mine looks.

Hi Roderunner,

My setup for my online account is approx 20 folders which I created (friends, family, work, etc...). All these folders are displayed. Within family, for example, I have the sub folders Mum & Dad, Brother and Sister. It is these folders which are hidden.

Cheers,
SJ

Might work better if each category had it's own folder instead of sub folders.

Unfortunately that would be a pain for me, I quite like the way I have all my folders set up in Outlook.com, I'd just like to replicate what I am used to in WLM.