I'm confused how the loss of the email on the hosting service lost email in a PST file. Do you mean PST? Do you mean OST? But if he had an OST he'd have had copies of the emails.
I do not think I would trust leaving my emails only copy on a server I had no control over. Maybe if it was one run by a large company I could rely on.
On Outlook, which I use for work emails off an Exchange server, I have setup offline working which means I have a cached copy of emails on my machine so can access them offline.
For personal emails I used to use Outlook. And the approach I preferred was to use POP3 to download emails (so I have a copy) but set it up to leave a copy on the server for around 30 days allowing me to still see them via the web interface (working away etc). Might be worth trying.
As I say, taking an Outlook 2003 created PST and opening it in Outlook 2007 works. I cannot comment on whether you could take an OST file and do the same though.
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