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What operating system are you using?
Go to the Control Panel and open Mail (or Mail & Fax) to set up Internet Mail in Outlook 97.
In Mail, Click on "Show Profiles" then select "Add". When setting up your new service, select "Internet Mail" and
follow the prompts.
Make sure you set Outlook to use the new profile as the default.
There is also an update enhancement patch which can be downloaded Here http://office.microsoft.com/downloads/9798/outlimep.aspx which you may not have as Outlook 97 had a lot of problems.
Hope this helps!
war1