Okay, thank you. How do I apply a rule manually ? Do I need to go
Tools - Message Rules - Mail - highlight the rule and click "Apply
now" ?

This seems a rather tedious process. It there a simpler/quicker way ?

Okay, I am in fact wanting incoming mail to be affected. But only
email that goes to folder two and has an attachment to go to three.

If I understand you correctly I think you may be suggesting that I do
things manually OR perhaps alter my current incoming rule to do this ?

The rule that I am currently working on is something like this ;

Apply this rule after the message arrives
Where the From line does not contain (People in my address Book)
Move it to the two folder

Can I add an "Else if" statement here ? Say something like....

Apply this rule after the message arrives
Where the From line does not contain (People in my address Book)
and Where the message has an attachment
Move it to the three folder  
Else if
Where the From line does not contain (People in my address Book)
Move it to the two folder

Or is that not possible and the best approach is simply two rules ?

My problem with that idea is that if I have two rules and want to
update the list of people in my address book then I need to do that
for both filters. A (long) conditional filter would avoid that.

Regards, John.