User cannot connect to hosted exchange with Outlook 2010 or 2007

Here's the story- User corrupted his mail profile (using Outlook 2010 connecting to hosted Exchange). It had something to do with his .ost file and everytime he started Outlook it said "Cannot connect to the mail store". I already 1) deleted the .ost file 2) deleted the Mail profile and 3) uninstalled Outlook 2010 completely. I installed Outlook 2007 and created a new Exchange mail profile for user. Now constantly getting the message "The action cannot be completed. The connection Microsoft Exchange is unavailable. Outlook must be online or connected to complete this action." For the life of me, I cannot figure out why this user can't connect to the hosted exchange server. Any help?
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XAnalyzerAuthor Commented:
Firewall off. Antivirus disabled. Created a second local admin account, set up the Exchange profile and on startup of Outlook 2007 it says "the connecton to Microsoft Exchange is unavailable. Outlook must be online or connected to complete this action." I checked the hosts file and it is properly redirecting the exchservername to the correct ip address. Something is just not letting it reach out to the hosted exchange.
Is this problem unique to this user, what happens if you login on that computer as another user?

We have had this problem in the past and resolved it by setting the users Mail profile to ask for their password at each login. Then the next time they open outlook it passes through their credentials and Outlook comes online and you can remove the option again. As you have deleted the mail profile im guessing this isn't an option.
XAnalyzerAuthor Commented:
I created a second (local admin) account and still to no avail. I changed the settings as you suggested to prompt for password. Immediately upon opening Outlook it says "the connection to microsoft exchange is unavailable. Outlook must be online or connected to complete this action." Again, no firewall, no antivirus, host file is correct in redirecting, OWA works, but Outlook does not connect.
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Because you mentioned the 'cannot connect to the mail store' error and because your running outlook 2007 try the below:

1) Open Windows Explorer and navigate to your Office directory.
2) Right click the Outlook.exe and choose Properties
3) Click the Compatibility tab and UNCHECK the “Run this program in compatibility mode for” option

Also try running Outlook from cmd prompt with: outlook.exe /cleanprofile
This removes invalid profile keys and recreates default registry keys where applicable.
XAnalyzerAuthor Commented:
The option was never checked to begin with. I tried the /cleanprofile, it opens Outlook to create a new profile, but after trying to create a new e-mail account for Exchange leads to this error "the connection to Microsoft Exchange is unavailable. Outlook must be online or connected to complete this action"
Can you tell me the version of Exchange you are using?
XAnalyzerAuthor Commented:
I FOUND the culprit - It's a file called mapisvc.inf. I don't know what it is or why it causes so many problems, but after seeing that suggested for an unrelated issue on google, I found it deep in bowels of Windows\system32, took ownership, edited permissions, and then was able to delete it. Problem solved.

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XAnalyzerAuthor Commented:
fixed it
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