Fantastic Advice!
Originally when I had this problem I contacted apple and tech support had nothing to offer for help, which at that point they connected me with a senior advisor and all he could offer was to reinstall Lion. Did that and nothing. I even tried to contact the senior advisor considering he left his contact information and I never heard back.
After further research and finding this post, I had a starting point. After deleting the mail index file(s) I opened mail again and nothing. Then I tried the process again but I also deleted the "MessageRules.plist". I also made sure that the files were deleted from the user Library folder and the system Library folder. FINALLY after mail not working for 2 months, IT WORKS!!!!!!
THANK YOU 1enigma1, TUAW, and hawkwings