I have Outlook 2010.  One a clean install I added an IMAP account.  So now I have my "Outlook Data File"  then my email address data file.  As seen below.  I want to be able to only have the Outlook Data File location.  And not have all the redundant folders. 

How can I fix this?  is it possible? 

You can't "fix" it since that's the behavior with an Imap account which maintains the contacts/calendar folders in a separate infostore (PST file). In O'2010 - since the contact/calendar folders are the default for the profile, all default folders are created in the "Outlook Data File". You cannot delete <any> folders <designated> as a default folder from within the Outlook UI.