Mighty strange my friend must have something to do with the loos attached *pst files I think..

But try this separate sub:[VBA]
Sub FolderName()
Dim oNameSpace As Outlook.NameSpace, oTargetFolder As Outlook.MAPIFolder

Set oNameSpace = Application.GetNamespace("MAPI")
Set oTargetFolder = oNameSpace.PickFolder

If TypeName(oTargetFolder) <> "Nothing" Then
MsgBox oTargetFolder.Name
End If

Set oTargetFolder = Nothing
Set oNameSpace = Nothing
End Sub
[/VBA]

Run it several times and check that you get the correct name of the chosen folder in the messagebox.

Enjoy!