Exact Error Message:  "One or more folders included in Photo Gallery is offline and is preventing Photo Gallery from starting. Either remove offline folders from Photo Gallery using Windows Explorer, or make sure that all folders are online and try starting Photo Gallery again."

I recently had this message for 2 days and it was sending me crazy as I couldn't access my photos in Windows Live Photo Gallery.

The solution I found was that the error message was referring to a Storage device that had previously held some of my photos and videos.  And I had accessed Windows Live Photo Gallery from this device. 

In my case the device was a hard disk I had bought from Ebay.  It was faulty so I formatted it after removing my photos.

As far as I was concerned that was it.  There was nothing left on the hard drive and it was forgotten about.

However for the following two days I couldn't get into Live Photo Gallery.  A pop up message would appear containing the words at the very top of this post,  and when I clicked the X in the corner of the message it would close Photo gallery.

At my wits end I decided to try plugging the faulty hard drive back into the PC (even though it was empty) so that I could see if I could access the Photo Gallery with this drive plugged in at the same time.   And it worked !  

After nearly fainting and then recovering ....  I knew the disk had to be returned tomorrow so I had to find the answer quickly as to how to use Photo Gallery without this device plugged in.

When I looked in the contents of this hard drive there was just one Windows icon which was :  MY VIDEOS.   I clicked it and there was nothing on there.

So the solution was to Right click on the folder and choose Properties.  One of the tabs was for 'Location'.  That tab told me that the My Videos location was on this faulty hard drive.  So I changed the Drive Letter and Location to the hard drive where my photos are normally stored on my PC.

1. Clicking Properties and then the Location Tab and change the Location to where you

normally store your photos or Videos :

2.  After clicking the 'Apply' button above you are presented with a box like this below :

3.  After clicking 'Yes' on the box above you are presented with this message :

Click 'Yes' and your images or folders will be moved to the new location and you can then access

Windows Live Photo Gallery.

Hope it works for others as well.

David.