local folders need the same name

Why can’t you have contact list folder with the same names as email folders. If I have a company that sends me a lot of emails, and put them into a mail folder by the company name, I can’t have an address group with the same name, because it looks like a folder with the same name under local folders. Bad! They should be two completely different directory groups, not just stuffed under local folders.

You are right. As a workaround you can make your contact folders subfolders to the existing Contacts folder. Then Local Folders\Contacts\company1 would not interfere with Local Folders\company1. To make it even more straight forward you could add a Main Mails folder for your mails, thus ending with Folders\Contacts\company1 and Folders\Mails\company1.