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Outlook Office 365 cannot display folder error

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I recently loaded Outlook Office 365 (switching from a pop mail account) and it worked fine for several days. I run Windows 7 on a Vaio Z Series with Office 2010. Today I tried to open it and this is the message:

The file C:\Users\Name\AppData\Local\Microsoft\name@server.com - Office 365.ost is in use and cannot be accessed. Close any application that is using this file, and then try again. You might need to restart your computer.

I have restarted the computer multiple times and it still shows this error message when I open it. If I try to click on any other folder like Sent or Drafts within the inbox it just spins and I have to manually close it. No outlook.exe file shows up as running when I go to task manager.

I have tried to restore back to an earlier setting but it is not allowing me to do that. Says: System restore failed to extract the file (C:\) from the restore point. An unexpected error occurred during System Restore. (0x8000ffff)

Any ideas? Advice?

Thanks!


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