diff --git a/res/xml/account_settings_preferences.xml b/res/xml/account_settings_preferences.xml
index 22b08b316..33a29ed60 100644
--- a/res/xml/account_settings_preferences.xml
+++ b/res/xml/account_settings_preferences.xml
@@ -300,17 +300,12 @@
             android:key="archive_folder"
             android:title="@string/archive_folder_label"
             android:dialogTitle="@string/archive_folder_label" />
+
         <ListPreference
             android:persistent="false"
             android:key="drafts_folder"
             android:title="@string/drafts_folder_label"
             android:dialogTitle="@string/drafts_folder_label" />
-        <ListPreference
-            android:persistent="false"
-            android:key="outbox_folder"
-            android:title="@string/outbox_folder_label"
-            android:dialogTitle="@string/outbox_folder_label" />
-
 
         <ListPreference
             android:persistent="false"
diff --git a/src/com/fsck/k9/Account.java b/src/com/fsck/k9/Account.java
index d783eebb5..719e4b15a 100644
--- a/src/com/fsck/k9/Account.java
+++ b/src/com/fsck/k9/Account.java
@@ -85,7 +85,6 @@ public class Account implements BaseAccount {
     private String mTrashFolderName;
     private String mArchiveFolderName;
     private String mSpamFolderName;
-    private String mOutboxFolderName;
     private String mAutoExpandFolderName;
     private FolderMode mFolderDisplayMode;
     private FolderMode mFolderSyncMode;
@@ -252,7 +251,6 @@ public class Account implements BaseAccount {
         mTrashFolderName = prefs.getString(mUuid  + ".trashFolderName", "Trash");
         mArchiveFolderName = prefs.getString(mUuid  + ".archiveFolderName", "Archive");
         mSpamFolderName = prefs.getString(mUuid  + ".spamFolderName", "Spam");
-        mOutboxFolderName = prefs.getString(mUuid  + ".outboxFolderName", "Outbox");
         mExpungePolicy = prefs.getString(mUuid  + ".expungePolicy", EXPUNGE_IMMEDIATELY);
         mSyncRemoteDeletions = prefs.getBoolean(mUuid  + ".syncRemoteDeletions", true);
 
@@ -396,7 +394,6 @@ public class Account implements BaseAccount {
         editor.remove(mUuid + ".trashFolderName");
         editor.remove(mUuid + ".archiveFolderName");
         editor.remove(mUuid + ".spamFolderName");
-        editor.remove(mUuid + ".outboxFolderName");
         editor.remove(mUuid + ".autoExpandFolderName");
         editor.remove(mUuid + ".accountNumber");
         editor.remove(mUuid + ".vibrate");
@@ -493,7 +490,6 @@ public class Account implements BaseAccount {
         editor.putString(mUuid + ".trashFolderName", mTrashFolderName);
         editor.putString(mUuid + ".archiveFolderName", mArchiveFolderName);
         editor.putString(mUuid + ".spamFolderName", mSpamFolderName);
-        editor.putString(mUuid + ".outboxFolderName", mOutboxFolderName);
         editor.putString(mUuid + ".autoExpandFolderName", mAutoExpandFolderName);
         editor.putInt(mUuid + ".accountNumber", mAccountNumber);
         editor.putString(mUuid + ".hideButtonsEnum", mScrollMessageViewButtons.name());
@@ -828,11 +824,7 @@ public class Account implements BaseAccount {
     }
 
     public synchronized String getOutboxFolderName() {
-        return mOutboxFolderName;
-    }
-
-    public synchronized void setOutboxFolderName(String outboxFolderName) {
-        mOutboxFolderName = outboxFolderName;
+        return K9.OUTBOX;
     }
 
     public synchronized String getAutoExpandFolderName() {
diff --git a/src/com/fsck/k9/K9.java b/src/com/fsck/k9/K9.java
index 342996bcf..4628d9dc1 100644
--- a/src/com/fsck/k9/K9.java
+++ b/src/com/fsck/k9/K9.java
@@ -213,6 +213,11 @@ public class K9 extends Application {
      */
     public static final String INBOX = "INBOX";
 
+    /**
+     * This local folder is used to store messages to be sent.
+     */
+    public static final String OUTBOX = "OUTBOX";
+
     /**
      * For use when displaying that no folder is selected
      */
diff --git a/src/com/fsck/k9/activity/ActivityListener.java b/src/com/fsck/k9/activity/ActivityListener.java
index 2e820a61f..432e87da2 100644
--- a/src/com/fsck/k9/activity/ActivityListener.java
+++ b/src/com/fsck/k9/activity/ActivityListener.java
@@ -12,6 +12,7 @@ import com.fsck.k9.controller.MessagingListener;
 import com.fsck.k9.service.MailService;
 
 public class ActivityListener extends MessagingListener {
+    private Account mAccount = null;
     private String mLoadingFolderName = null;
     private String mLoadingHeaderFolderName = null;
     private String mLoadingAccountDescription = null;
@@ -37,6 +38,9 @@ public class ActivityListener extends MessagingListener {
                 if (K9.INBOX.equalsIgnoreCase(displayName)) {
                     displayName = context.getString(R.string.special_mailbox_name_inbox);
                 }
+                else if ((mAccount != null) && mAccount.getOutboxFolderName().equals(displayName)) {
+                    displayName = context.getString(R.string.special_mailbox_name_outbox);
+                }
 
                 if (mLoadingHeaderFolderName != null) {
 
@@ -82,6 +86,7 @@ public class ActivityListener extends MessagingListener {
         int numNewMessages) {
         mLoadingAccountDescription = null;
         mLoadingFolderName = null;
+        mAccount = null;
         informUserOfStatus();
     }
 
@@ -89,6 +94,7 @@ public class ActivityListener extends MessagingListener {
     public void synchronizeMailboxStarted(Account account, String folder) {
         mLoadingAccountDescription = account.getDescription();
         mLoadingFolderName = folder;
+        mAccount = account;
         mFolderCompleted = 0;
         mFolderTotal = 0;
         informUserOfStatus();
@@ -131,6 +137,7 @@ public class ActivityListener extends MessagingListener {
                                          String message) {
         mLoadingAccountDescription = null;
         mLoadingFolderName = null;
+        mAccount = null;
         informUserOfStatus();
 
     }
diff --git a/src/com/fsck/k9/activity/ChooseFolder.java b/src/com/fsck/k9/activity/ChooseFolder.java
index 99027b088..01513196f 100644
--- a/src/com/fsck/k9/activity/ChooseFolder.java
+++ b/src/com/fsck/k9/activity/ChooseFolder.java
@@ -301,7 +301,7 @@ public class ChooseFolder extends K9ListActivity {
                     if (K9.INBOX.equalsIgnoreCase(name)) {
                         mAdapter.add(getString(R.string.special_mailbox_name_inbox));
                         heldInbox = name;
-                    } else if (!K9.ERROR_FOLDER_NAME.equals(name)) {
+                    } else if (!K9.ERROR_FOLDER_NAME.equals(name) && !account.getOutboxFolderName().equals(name)) {
                         mAdapter.add(name);
                     }
 
diff --git a/src/com/fsck/k9/activity/FolderInfoHolder.java b/src/com/fsck/k9/activity/FolderInfoHolder.java
index 98d8f6034..30023b343 100644
--- a/src/com/fsck/k9/activity/FolderInfoHolder.java
+++ b/src/com/fsck/k9/activity/FolderInfoHolder.java
@@ -104,7 +104,7 @@ public class FolderInfoHolder implements Comparable<FolderInfoHolder> {
         }
 
         if (this.name.equals(account.getOutboxFolderName())) {
-            this.displayName = String.format(context.getString(R.string.special_mailbox_name_outbox_fmt), this.name);
+            this.displayName = context.getString(R.string.special_mailbox_name_outbox);
         }
 
         if (this.name.equals(account.getDraftsFolderName())) {
diff --git a/src/com/fsck/k9/activity/MessageList.java b/src/com/fsck/k9/activity/MessageList.java
index 6a35b77e4..a84d19292 100644
--- a/src/com/fsck/k9/activity/MessageList.java
+++ b/src/com/fsck/k9/activity/MessageList.java
@@ -488,6 +488,8 @@ public class MessageList
 
                 if (K9.INBOX.equalsIgnoreCase(displayName)) {
                     displayName = getString(R.string.special_mailbox_name_inbox);
+                } else if (mAccount.getOutboxFolderName().equals(displayName)) {
+                    displayName = getString(R.string.special_mailbox_name_outbox);
                 }
 
                 String dispString = mAdapter.mListener.formatHeader(MessageList.this, getString(R.string.message_list_title, mAccount.getDescription(), displayName), mUnreadMessageCount, getTimeFormat());
diff --git a/src/com/fsck/k9/activity/setup/AccountSettings.java b/src/com/fsck/k9/activity/setup/AccountSettings.java
index 84c452110..8980b072f 100644
--- a/src/com/fsck/k9/activity/setup/AccountSettings.java
+++ b/src/com/fsck/k9/activity/setup/AccountSettings.java
@@ -11,6 +11,7 @@ import android.preference.*;
 import android.util.Log;
 import android.view.KeyEvent;
 
+import java.util.Iterator;
 import java.util.Map;
 import java.util.LinkedList;
 import java.util.List;
@@ -96,7 +97,6 @@ public class AccountSettings extends K9PreferenceActivity {
 
     private static final String PREFERENCE_ARCHIVE_FOLDER = "archive_folder";
     private static final String PREFERENCE_DRAFTS_FOLDER = "drafts_folder";
-    private static final String PREFERENCE_OUTBOX_FOLDER = "outbox_folder";
     private static final String PREFERENCE_SENT_FOLDER = "sent_folder";
     private static final String PREFERENCE_SPAM_FOLDER = "spam_folder";
     private static final String PREFERENCE_TRASH_FOLDER = "trash_folder";
@@ -157,7 +157,6 @@ public class AccountSettings extends K9PreferenceActivity {
 
     private ListPreference mArchiveFolder;
     private ListPreference mDraftsFolder;
-    private ListPreference mOutboxFolder;
     private ListPreference mSentFolder;
     private ListPreference mSpamFolder;
     private ListPreference mTrashFolder;
@@ -699,7 +698,6 @@ public class AccountSettings extends K9PreferenceActivity {
         mAccount.setAutoExpandFolderName(reverseTranslateFolder(mAutoExpandFolder.getValue()));
         mAccount.setArchiveFolderName(mArchiveFolder.getValue());
         mAccount.setDraftsFolderName(mDraftsFolder.getValue());
-        mAccount.setOutboxFolderName(mOutboxFolder.getValue());
         mAccount.setSentFolderName(mSentFolder.getValue());
         mAccount.setSpamFolderName(mSpamFolder.getValue());
         mAccount.setTrashFolderName(mTrashFolder.getValue());
@@ -852,18 +850,26 @@ public class AccountSettings extends K9PreferenceActivity {
             } catch (Exception e) {
                 /// this can't be checked in
             }
-            allFolderValues = new String[folders.size()+2];
-            allFolderLabels = new String[folders.size()+2];
+
+            // TODO: In the future the call above should be changed to only return remote folders.
+            // For now we just remove the Outbox folder if present.
+            Iterator<? extends Folder> iter = folders.iterator();
+            while (iter.hasNext())
+            {
+                Folder folder = iter.next();
+                if (mAccount.getOutboxFolderName().equals(folder.getName()))
+                {
+                    iter.remove();
+                }
+            }
+
+            allFolderValues = new String[folders.size()+1];
+            allFolderLabels = new String[folders.size()+1];
 
             allFolderValues[0] = K9.FOLDER_NONE;
             allFolderLabels[0] = K9.FOLDER_NONE;
 
-            // There's a non-zero chance that "outbox" won't actually exist, so we force it into the list
-            allFolderValues[1] = mAccount.getOutboxFolderName();
-            allFolderLabels[1] = mAccount.getOutboxFolderName();
-
-
-            int i = 2;
+            int i = 1;
             for (Folder folder : folders) {
                 allFolderLabels[i] = folder.getName();
                 allFolderValues[i] = folder.getName();
@@ -880,8 +886,6 @@ public class AccountSettings extends K9PreferenceActivity {
             mArchiveFolder.setEnabled(false);
             mDraftsFolder = (ListPreference)findPreference(PREFERENCE_DRAFTS_FOLDER);
             mDraftsFolder.setEnabled(false);
-            mOutboxFolder = (ListPreference)findPreference(PREFERENCE_OUTBOX_FOLDER);
-            mOutboxFolder.setEnabled(false);
             mSentFolder = (ListPreference)findPreference(PREFERENCE_SENT_FOLDER);
             mSentFolder.setEnabled(false);
             mSpamFolder = (ListPreference)findPreference(PREFERENCE_SPAM_FOLDER);
@@ -896,14 +900,12 @@ public class AccountSettings extends K9PreferenceActivity {
             initListPreference(mAutoExpandFolder, mAccount.getAutoExpandFolderName(), allFolderLabels, allFolderValues);
             initListPreference(mArchiveFolder, mAccount.getArchiveFolderName(), allFolderLabels, allFolderValues);
             initListPreference(mDraftsFolder, mAccount.getDraftsFolderName(), allFolderLabels, allFolderValues);
-            initListPreference(mOutboxFolder, mAccount.getOutboxFolderName(), allFolderLabels, allFolderValues);
             initListPreference(mSentFolder, mAccount.getSentFolderName(), allFolderLabels, allFolderValues);
             initListPreference(mSpamFolder, mAccount.getSpamFolderName(), allFolderLabels, allFolderValues);
             initListPreference(mTrashFolder, mAccount.getTrashFolderName(), allFolderLabels, allFolderValues);
             mAutoExpandFolder.setEnabled(true);
             mArchiveFolder.setEnabled(true);
             mDraftsFolder.setEnabled(true);
-            mOutboxFolder.setEnabled(true);
             mSentFolder.setEnabled(true);
             mSpamFolder.setEnabled(true);
             mTrashFolder.setEnabled(true);
diff --git a/src/com/fsck/k9/activity/setup/AccountSetupBasics.java b/src/com/fsck/k9/activity/setup/AccountSetupBasics.java
index 021683ab9..0bde132a1 100644
--- a/src/com/fsck/k9/activity/setup/AccountSetupBasics.java
+++ b/src/com/fsck/k9/activity/setup/AccountSetupBasics.java
@@ -233,7 +233,6 @@ public class AccountSetupBasics extends K9Activity
             mAccount.setTrashFolderName(getString(R.string.special_mailbox_name_trash));
             mAccount.setArchiveFolderName(getString(R.string.special_mailbox_name_archive));
             mAccount.setSpamFolderName(getString(R.string.special_mailbox_name_spam));
-            mAccount.setOutboxFolderName(getString(R.string.special_mailbox_name_outbox));
             mAccount.setSentFolderName(getString(R.string.special_mailbox_name_sent));
             AccountSetupCheckSettings.actionCheckSettings(this, mAccount, true, true);
         } catch (UnsupportedEncodingException enc) {
@@ -313,7 +312,6 @@ public class AccountSetupBasics extends K9Activity
         }
         mAccount.setDraftsFolderName(getString(R.string.special_mailbox_name_drafts));
         mAccount.setTrashFolderName(getString(R.string.special_mailbox_name_trash));
-        mAccount.setOutboxFolderName(getString(R.string.special_mailbox_name_outbox));
         mAccount.setSentFolderName(getString(R.string.special_mailbox_name_sent));
 
         AccountSetupAccountType.actionSelectAccountType(this, mAccount, mDefaultView.isChecked());
diff --git a/src/com/fsck/k9/mail/store/ImapStore.java b/src/com/fsck/k9/mail/store/ImapStore.java
index 2a5dd2a27..f122cfab5 100644
--- a/src/com/fsck/k9/mail/store/ImapStore.java
+++ b/src/com/fsck/k9/mail/store/ImapStore.java
@@ -386,6 +386,13 @@ public class ImapStore extends Store {
 
                 if (folder.equalsIgnoreCase(K9.INBOX)) {
                     continue;
+                } else if (folder.equalsIgnoreCase(K9.OUTBOX)) {
+                    /*
+                     * There is a folder on the server with the same name as our local
+                     * outbox. Until we have a good plan to deal with this situation
+                     * we simply ignore the folder on the server.
+                     */
+                    continue;
                 } else {
 
                     if (getCombinedPrefix().length() > 0) {