I am using Windows 8.1 and running live mail 2011. 

Looks like Live Mail shut down and then reloaded all the original default folders with all or most emails intact except they all are unread as if they are all new. 

I have found my personal folders in Storage folders listed as recovered folders.  How do I restore all my folders to their original location?  I tried dragging and dropping but that did not work for me.

What might have caused this in the first place?

TB