Longer version: I'm reluctantly migrating from Eudora to Outlook 2010. I figured Outlook would be able to vacuum up all my email fragments into a single system, fragments created by more than a decade of hard drive recoveries and email upgrades. I was wrong. This is what I got from running the email import wizard in Outlook 2010:
I then did a Google search on email conversion and found Transend. Having nothing to lose, I bought it for $49 and it converted my email perfectly, importing it into my existing PST file, thoughtfully placing these new folders in a subfolder which was clearly labeled so I could move the folders around afterwards as required.
Transend rocks. It does exactly what I needed done. It's going to solve a long-standing problem that has been driving me crazy. I hope that each member of the Transend team gets one of these for Christmas.