Folder Is Full Error In Outlook: How To Fix It?

Whenever I try to delete or move a particular folder in Outlook 2007, I get folder is full error in Outlook.
Folder is Full Error

And if I try to rename the folder to troubleshoot, I again get an error that says:

Cannot Rename Folder
This message is reverted by the application even for the folders that have nothing in them. Also, if the folder is tried to be permanently deleted (Shift+Del), again an error pop up on screen:
Unknown Error
What is the way to make Outlook functional again by fixing the error PST folder is full?
If this is your problem too, then the problem is related to oversized PST file or probably the PST file is corrupt. Before moving to troubleshooting steps, first of all check if the PST file is ANSI or Unicode formatted and what is its size.
·    For Outlook 2007, this can be verified by going to “File” menu and then select “Data File Management”.
·   Select a PST file that has to be verified. In the “Format” field, if it is “Personal Folders File” it means it is Unicode formatted and if it is “Personal Folder File (97-2002)”, it means it is ANSI formatted. 

Troubleshooting Steps!
       1) So, if the PST is ANSI formatted and its size is around 1.8 GB or above, it means it is corrupt due to being oversized. In this case, you can use the PST 2GB tool that truncates the file into small sections. After the file is divided into parts, you can move these files to desired PST file, delete them or archive them. However, this free 2GB truncation utility has some recovery limitations:
·         The PST file that is selected to be truncated should be 20-25MB less than 2GB. The data that this utility truncates will be permanently removed from the new copy generated by it and some data will be missing from the output copy.
·         Then, the hard disk should have around 2GB free space in order to run the tool. This is because a new copy of PST file will be created and for saving it, approx 2GB free hard disk space should be available.
     2) If it is Unicode formatted and the file size is around 4GB, then it means maximum file size has been reached (FAT 32). In this case, the option is to convert your disk to NTFS file system.
To do this, open Command Prompt and run “Convert D: /fs:ntfs” where ‘D:’ denotes drive letter which can be changed according to the partition where PST file is saved. Actually FAT32 file systems have a drawback that a folder of less than 4GB size can be created. 
·         Note:Upgrading from FAT32 to NTFS file system is not possible in Windows 95, 98, and ME.
     3)If the PST file is Unicode formatted and its size is around 15-18GB, then there is possibility that error folder is full Outlook 2007 is due to large size of PST file. In this case, the option is to increase the default size of PST file. To do this, open Registry editor by running regedit.exe:
·         In the registry editor, navigate to following location according to the version of Outlook used:
Now, edit the following values and remember that the values are case sensitive:
All these options can help to fix Outlook error folder is full. If these steps do not work (and PST file is small than its default size limit), then possibility is the PST is corrupt. In that case, try to fix the error with scanpst.exe (Inbox Repair Tool). This utility can be found at different locations depending upon version of Windows and Outlook version.
Scanpst.exe Location
Hope these suggestions work to fix the folder is full error. If still the problem persists, then the suggestion is to go for some third party PST recovery solution that could help to retrieve data from inaccessible PST file. 

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