we have two option for creation of Archive folder or PST(Personal Storage Template) or personal folder

1. Automatic Archive

2. Manually Archive

Manually Archive for 2007 and 2010

For Outlook 2007

File> New> Outlook data file> Select 1st option under type of storage>select the location for PST(exp-d-driveoutlook)> Give file name according your choice like Archive 2011> Ok> mention again Archive 2011>Ok

Now it appear in left hand side Navigation pane of Outlook 2007 window

For Outlook 2010

File> Info> Scroll down account setting button >select Data file tab under Account Setting window>>Select path where you want store> Give file name >>ok Give name to the Archive folder>>OK

Now it appear in left hand side Navigation pane of Outlook 2010 window