Courier-pop -ERR Maildir: No such file or directory

[bruce-lists@manygriffi.blogdns.net (Bruce Griffis)]

I decided to install courier-pop, courier-pop-ssl for POP access to my mail 
server. Postfix is doing fine now (and am able to e-mail using mutt). Had a 
question on the courier-pop installation. When I test access to my box using 
"telnet 192.168.1.25 110" I am able to use userid/password, but get the following 
errors:
bruce-lists@manygriffi:~$ telnet localhost 110
Trying 127.0.0.1...
Connected to localhost.
Escape character is '^]'.
+OK Hello there.
user bruce
+OK Password required.
pass (xxxxxxx)
-ERR Maildir: No such file or directory
Connection closed by foreign host.

I know it has to be a goofy error as postfix is sending and receiving fine, and 
mutt can read and reply. Where do I look?
Thanks, BruceG