[Author and credit to : Nagendran / 13-April-2011 : 6.51pm]
I have come across this problem before and found a solution to backup personal folders automatically with Outlook 2010. I hope this steps below will be of help to you if you encounter the same issue.

MICROSOFT Products
> Microsoft Outlook 2010 : Unable to have PERSONAL FOLDERS BACKUP to work properly

Objective:
To have an automatic backup of your "outlook.pst" file, a crucial file storing information of your outlook database including contacts.

Steps:
Download from http://download.microsoft.com. Please do a search for "Personal Folders Backup". You will be linked to "pfbackup.exe" file which is about 160kB, an add-in feature designed to support Outlook 2002 - 2007 respectively. The same solution is offered for Outlook 2010.

Most of the time, Microsoft's helpdesk will ask you to install, preferably, the 32-bit version for Microsoft Office for this application to work better. From my personal experience, it works perfectly well and fine in WIndows 7 (64-bit) too.

My System Configuration:
I am using Windows 7 (64-bit) version with installation of Microsoft Office 2010 (32-bit), running on a Fujitsu SH760 notebook.


A summary of the steps I took and my experience:
After I have installed the pfbackup.exe to Outlook 2010, it was not visible in the list of installed programmes and was not functioning in comparison to similar installation done to older versions of Outlook. When I google for an answer, right from Microsoft's support site at http://support.microsoft.com/kb/2030523, I was disappointed as the answer I received from Microsoft's helpdesk was not much help at all. Neither was the FIX-IT from support.microsoft.com/kb/2030523 still did not work.

Therefore, I decided to tweak around and see if I can solve this issue with some creativity - I am glad to say, a workable solution is available.

My suggestion of steps on how to install Microsoft's Personal Folder Backup:

1. Download and install "pfkbackup.exe" from download.microsoft.com
2. Open Outlook 2010, go to "FILE" - "OPTION" - "Add-Ins"
3. Go to "Manage : COM Add-ins", and select "Go" tab
4. Select "Add" tab, go to C:\Program Files (x86\Microsoft Office\Office14\ADDINS\outbak.dll, where most common installation link appears.
5. You will now see in COM Add-Ins available features, "Outlook Backup Addin"
6. Now, go to "FILE" - "OPTION" - "Customize Ribbon"
7. In "Customize the Ribbon" box, highlight "Add-Ins" box
8. Upon executing line 7, you can now see an "Add-Ins" tab in your Outlook page.
9. Select "Add-Ins" tab and you will see "BACKUP".
10. Now, just assign in "Options" your backup directory properly, frequency of backup, preferbally once a day and
you are well on your way in having an automatic backup of your outlook.pst file in your backup location.


For Your Information: Manual Backup of your Outlook.psf file
During installation of your Microsoft Office in Windows 7, it will create in your libraries, under "Documents", a subdirectory "Outlook Files". You are able to copy this file manually and backup in your preferred location.