Actually, after spending hours trying various things (re-installing/repairing IE6 and OE as per knowledge base article 318378 - which didn't get very far at all. It refused to reinstall IE6 even after a reg-edit)...; the requisite spyware/virus scan; I did what I should've done a long long time ago.
Installed Outlook 2003. Works like a charm now OE6 is still broken though.