I tried replicating this yesterday with Gmail and Outlook and every time a ticket was created properly.
You will need to post an example full, raw email for us to test with.
moose999 bro which folder that contains logs -- I am struggling on locating these logs folder
osTicket errors are logged in Admin Panel > Dashboard > System Logs. Any other errors will be logged in their respective places (eg. PHP errors will be logged in the PHP error logs, MySQL errors will be logged in the MySQL error logs, etc.).