Outlook 2003 connection problem with Exchange Server 2003, contacts and calendar not available

I have no experience with Outlook or Windows Server/Exchange Server.  I am trying to help a friend with her existing home business network.

I am attempting to install Outlook 2003 on a Windows XP desktop and have it communicate with an Exchange Server 2003 in order to allow an exising user to access her email, contacts, and calendar from a desktop in a different room.

Here is the existing network layout:
Server A = Windows 2003 Server with Exchange Server
Computer B = Desktop pc  with Win XP sp 2 and Outlook XP
Computer C = Laptop pc with Win XP sp2 and Outlook 2003
Computer D = Desktop pc with Win XP sp 2 and Outlook 2003

Server A, Computer B (note different version of Outlook) and Computer C  already have Outlook installed and the email accounts, contacts, and calendar are all available and everything works correctly.  The woman that owns this business and her one employee ALL login to their computers using the same User Name and Password.   (I know, very poor security).  
For example:
User Name = Jane
Password =  pass123

The Domain is called = Dynamics
The Exchange Server is called = xcdsv1.dynamics.local

Computer D is the one that I am having trouble with.  I have installed Microsoft Outlook 2003 on this computer, however, I am unable to see Jane's contacts or calendar.  I looked at all the settings on Computer C and duplicated them on Computer D.  I am logging in to Computer D as Jane with the correct password and selecting the Dynamics Domain.  I was able to set up her email accounts on Computer D which work correctly and download correctly.

However, when I attempt to set up the Exchange Server account within Outlook 2003 I get a message that says "unable to set up exchange server, go to control panel and click on Mail icon".  So, I closed Outlook and set up the exchange server settings for Outlook using the Mail icon.  Then re-opened Outlook.  I got a message that says "exchange server is not offline you need to connect to the server".  Then another dialog box opens with the exchange server address and password.

I then click on connect and it seems to connect to the server.  This happens everytime I open Outlook 2003.  The email accounts download properly however, the contacts and calendar are blank.   The information for the contacts and calendar which are availabe when logging into the other computers with same user name, password, and domain are not available on Computer D.

I am able to ping the server, and access the internet through Computer D.

I have tried the following:
Uninstalling and re-installing Outlook 2003
Deleting the Network Card device under Device Drivers, rebooting, and reinstalling

How can I get Outlook 2003 on Computer D, to access the existing users Contacts and Calendar?