This is a strange issue.
Our Exchange 2007 System had a few issues and everyone on outlook was receiving trying to connect to exchange server issues. It would not connect and no event log errors were present and exhange said it was fine too on the server.
I found out that it was something to do with the new 2008 Server we had pushed out in school which has only 50 connection limits. I increased the connection limit to 200 as we have many devices using email clients.
9 out of 10 users (literally 10 had issues and only 1 cannot connect now) are working fine now as i increased the limit and removed there account from outlook and recreated the account in outlook and everyone was happy apart from 1.
When outlook loads it hangs on loading profile. So i deleted data file and removed all references to all email accounts. I then attempted to reconnect to exchange. The new data file is created and when i open outlook the Loading Profile Fails.
So i repaired office and that didnt work so i uninstalled office and installed Office 2010 to see if that would make a difference but it didnt.
I booted into safe mode and renamed the User Profile so when i logged back in it created a new User Profile i then tried to setup the email again but this failed.
Same issue Loading Profile but no issues logged in Event Log.
The only thing i have not tried is to create a new Exchange Mailbox for this user but really wish to avoide this.
After Loading Profile Fails i receive error - Cannot open your defualt e-mail folder. You must connect to Microsoft Exchange with the current profile before you can syncronize your folder with your outlook data file (.ost).