The number 246 is the number of message headers you have downloaded; the 242
are the messages you have not "read" (i.e., clicked on and left selected
long enough for them to have been marked as read). To get the rest, you have
to change your NG settings so that you don't get just a limited number of
headers at a time (in Tools | Options | Read: News, clear the check box for
"Get (x) headers at a time." When you click on a NG in OE, only the headers
(subject lines) are downloaded; messages are not downloaded until you choose
to do so (there are settings for each NG, however, that determine whether
headers or messages are downloaded for offline reading).
The messages that you download (by clicking on the header to read in the
preview pane or by double-clicking to open them) are indeed stored on your
HD. If you have the Size column displayed in OE, you'll see that they're
quite small (I'm seeing messages ranging from 1KB to 7KB in this NG at the
moment), and OE stores them collectively in folders so that they don't take
up too much space. If you have OE set to expire them after a certain length
of time (say, 30 days), then you won't be storing them indefinitely.
For more on all this, see
--
Suzanne S. Barnhill
Microsoft MVP (Word)
Words into Type
Fairhope, Alabama USA
http://word.mvps.org