Actually I'm starting to think that Win98 may be the problem. I'll update the dll as you mentioned - it's a great idea - thanks so much.
Considering the OLE function works fine with Word, Powerpoint, Excel, considering the OLE->new function works with all the software even Outlook, considering only one specific version of Outlook doesn't work (or is it because it's running under Win98), I tend to believe Win98 and its dll may be the problem or else, perhaps the OLE package.
I'll run the same bit of code with Outlook 2002 under Win2k and I'll let you know whether it works.