Sometimes the most annoying errors are impossible to figure out, unless it happens to you. In that case, you probably solved it by happenchance. That's how it is with this annoyance.
Every time I tried close the Options dialog after making changes, a (very useless and unhelpful) warning dialog came up that simply said "The file does not exist". The only way to close the Options dialog was by cancelling it. The warning message is useless since it doesn't tell me *what file* is missing.
This is caused by a missing reminder sound file on the Advanced page. I've since discovered that changing Windows themes can cause the reminder to go missing. Choosing a sound file for the reminder fixes the problem. Or you can uncheck the Play reminder sound option.
If you get this error and a sound file is listed, check each page of the Options dialog and see if any other files are missing.

Martin says
Impressive Diane.
Tried to change the timezone.
Had clicked play "reminder sound" several weeks ago.
Would have never linked the two items
T says
THANK YOU!!!!!!
Gayla Franklin says
Thank you, thank you, thank you. It was driving me crazy. I even reinstalled outlook and that didn't work. I can't believe it was so simple. Kudos to you.
Aimee says
THANK YOU! That was the perfect fix!
TC says
Thank you!
Jacques says
Diane,
I send you a special thank from France.
Your answer on Outlook 2010 Dialog: "The file does not exist" helped me.
Thank again,
Jacques
Michael says
Thank a whole lot! Your solution really works. I had exactly the same problem but after following your instruction, everything now works.
Happy Me! says
Finally fixed...should have searched for this much earlier. Sigh. What an odd-ball error!
Robin says
OMG I can't believe how simple this was, thank you! I'm so glad that I found this as I have wasted several hours trying to figure it out. Have a blessed day.
Annie B. says
Thanks Diane! We don't like errors and this was a real simple fix.
Bill says
My thanks also, my corporate support group could not figure that one out.
Chris says
Thanks heaps - I had this issue and this fixed it for me.