Why does this AppleScript get an “AppleEvent handler failed” error on Mac OS X 10.5 Leopard?

Your script looks fine to me. If I were you, I would try running the script in another OS X account on the same computer, repair permissions, look at your logs (you've already done that, but it's still a good idea), run all relevant software updates, temporarily move your ~/Library/Mail folder to eliminate it as a factor, etc. Tell me what happens, especially if it works again :).

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