Outlook 2007 comes pre-set with a Rule to remove Categories from all
incoming emails. Why?

I find it cumbersome to have to assign Categories to new incoming emails.

Does the Catagory assignment show to the recipient on outgoing emails?

I have assigned Catagories in my contacts. When I receive an email from a
particular contact I would like it to reflect that on the incoming email.

Is there another way?

Thank you,
Julie