Tried Bat-Bubba's solution which appears to have helped others.
"In the Home Tab, check to Work Offline. In the View Tab, uncheck the Reading Pane. On the left hand side, scroll down to "Storage Folders" and you'll see the Outbox. Open the Outbox and delete the message..."
I still could not find the word 'outbox' on the left panel. Finally saw it where everyone said it was, but it was in the default language which I had specified when signing up for live essentials, while all the other titles were in my major language English, so I was looking for it in English and completely overlooked it. It was right there all the time. Talk about selective perception. Problem solved.