MS Outlook 2003 - view + other folder problem

I am still getting used to Outlook.
Two issues:
1] Suddenly all my new email in the inbox is "grayed out" looking. No idea how or why this happened, and don't know how to change the appearance back to just the way it used to be -- normal dark type.
2] I was backing up all my contacts and stuff by exporting to a .pst personal folders with no trouble syncing with PDA until suddenly there are two folders - one personal, but now the pda won't sync with contacts which are in the backup "personal" folder. Trying to figure out how to delete the "other folder".

I don't think the last problem makes sense the way I tried to explain it.

 

Update to question number two.
When I click on the Contacts tab it shows no contacts at all. When I look at it further there are two things -- one says Contacts in Personal Folder (all the contacts are there) and then there is one labeled contacts with no names in it. How do I delete the folder where nothing is stored?