Converting Eudora 5 & 5.1 to Outlook XP

I am switching our users to Outlook from Eudora. While I have tried the importing feature on outlook - importing the Internet Mail and Addresses, this feature always gives me an error that the folder mail (Eudora's) could not be opened.

Can anyone help?

I'll even add another 400 points if you can tell me how to import the personal folders that people have set up in eudora.