The action cannot be completed. The Connection to Microsoft Exchange is unavailable. outlook must be online or connected to complete this action.

Problem: Exchange account has been setup correctly on Windows 7 (64bit) Outlook 2007 connected to 2003 Exchange server. Username is correct, entering the correct password and pressing enter the login screen closes and reopens looping forever. If I hit cancel I get the errors below::: (All other installations/setups have been succesful on all the other computers here at the office)

The action cannot be completed. The Connection to Microsoft Exchange is unavailable. outlook must be online or connected to complete this action.

Cannot start Microsoft Office Outlook. Cannot open the Outlook window. The set of folders cannot be opened. The file C:\Users\NAME\AppData\Local\Microsoft\Outlook\outlook1.ost is not an offline folder file.

Your server or mailbox names cannot be resolved.The name cannot be resolved. The connection to Microsoft Exchange is unavailable. Outlook must be online or connected to complete this action.
I have reinstalled Outlook several times. With no avail. I can sign into the account OWA web access no problem.

Thanks for your help,
Spunky844