Ignore the Local Folders account if you see no need or use for it.

I use it for:

• Newsgroups.
• RSS feeds.
• Saved Search folders that collate multiple folders into one
• User-defined folders for storing messages separately from accounts. Sometimes we have messages with related content but in different accounts. Local Folders provides a place to store these all together.
• Permanent storage of messages that would otherwise be stored in IMAP-connected accounts on a server that may become unavailable.

Your Outbox is also in Local Folders, and this is where messages are queued up if they cannot be sent immediately.

http://kb.mozillazine.org/Local_Folders

Thanks for the swift help, Zenos, however I still don't quite understand how to use Local Folders. I tried to transfer the files I already have for archiving into Local Folders but only 3 went in, the others didn't seem to fit. Then when I left clicked on LF I got a preference page and the files I had put in LF disappeared (though I still had them under my own account. Is there a limit on the number of files that can be put in LF? Naar

The only reason I use local folders (stored directly on your computer) is to get them off of the internet.

The only space limit should be the amount of space available on your computer.

Did you know that you can either "move" them into the folders you've created, or highlight the email and "drag" them into the folder?