Hello dmdean333,
Did you ever figure out a solution to your IMAP folder problem. I am having the same situation - had POP roadrunner email in Outlook 2007. Now have dropped the roadrunner, and changed to IMAP Gmail in Outlook 2007. Having trouble with duplications in the Gmail - it shows up twice in the 'inbox' and in 'All Mail.'
I tried creating rules to send the messages automatically to my existing folders, but it doesn't seem to work.
This is on a Dell Vostro 1720 laptop with Windows 7.