The connection to the Microsoft Exchange Server is unavailable. Outlook must be online or connected to complete this action

I have inherited an IT technical position and we are running a windows sbs 20003.  We have a small LAN 8 users connected, however i have recently added a computer (windows XP Pro) to the domain and today i have added a user by following the sbs 2003 server management screen wizard and followed the user permission template, which was straightforward.  I understood that when i have added a computer in the passed (2 months ago) it was no problem. When i originally configured the new computer, however, i connected an existing user - no problems and set up Outlook 2003.  When i now attempt to log in on this computer with the new user it tells me that "The connection to the Microsoft Exchange Server is unavailable. Outlook must be online or connected to complete this action."

Perhaps i have a very simplistic understanding but cannot fathom why this is the case.  I have obviously browsed for support here and the www but without luck.  Does anyone have any clues as to potential causes of this error.
reasoninnovateAsked:
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Michael SConnect With a Mentor Commented:
Can you open a web browser and go to OWA and log in as that user?  If you can, then turn off Cached Exchange Mode and see if Outlook opens up.

Jay
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upul007Commented:
Check the windows xp firewall to see if outlook is in the exceptions list. Then in outlook file menu, see if outlook is online.
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reasoninnovateAuthor Commented:
I have the firewall switched off and when i attempt to open outlook i get the above message and from there it tells me "unable to open default e-mail folders. The file c:\Documents and settings\user\local settings\application data\microsoft\outlook\outlook.ost is not an offline folder file.
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Michael SCommented:
Also, make sure you're logged into the domain with that computer as that user - forgot to add that.

Jay
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j_ramesesInfo Sys MngrCommented:
jay_dale,

how do you navigate to cached exchange mode in OWA?

joshua
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