your pst file should be located here
c:\documents and setting\garyreynolds\local setting\application data\microsoft\outlook\outlook.pst
in windows explorer can you navigate to that folder?
i am not sure if some of those may be hidden folders,
in which case you would need to make hidden files and folders visible in
menu > tools > folder options > view > check the radio button for hidden files and folders
if you can open the folder can you see the pst file?
if so rename to something like outlook.pst.old
try starting outlook, it should now offer the option to create new folders and also require setting up of your mail and other services
if you old file contains important information it may be recoverable, but it would probably be on a pay for service basis