Trouble connecting Outlook 2007 to Exchange 2013

Hi Everyone,

I have a problem trying to get Outlook 2007 to connect to a newly installed Exchange Server 2013 Standard on a Windows 2012 Standard server.

Some info on setup –
We have an old Dell server running Windows 2003 Server with Exchange 2003 to be retired after the upgrade. I figured it would be much easier to just export the mailboxes and then re-import them into the new server since there are only 10 mailboxes and if I am not mistaken there isn’t a migration path from 2003 to 2013 which is fine with me seems like more headache if there were for only 10 mailboxes.

So in order to prevent any problems I decided to give this new server a different domain name. The old server was mycompany.local, so for this one I used something like newcompany.local. I setup the domain controller and AD DS all the goodies with all the updates all the way to CU3. On the workstations which I joined to the new domain newcompany.local I installed the updates for Outlook 2007 to December 2012. When I use OWA I am able to connect and see the mailbox and send e-mail to other users in the Exchange 2013 and then log in under their account and see that they received the e-mail so I know that part is working, BTW this is all on premises local intranet, I haven’t tried from the Internet yet. However, when I try to open Outlook 2007 which by the way I manually setup Outlook and it says it finds the Exchange and verifies the user name but when I go to open it I get this famous dialog box –

Cannot start Microsoft Office Outlook. Cannot open the Outlook window. The set of folders cannot be opened. The attempt to log onto Microsoft Exchange has failed.

I have tried this on another server (created another 2012 server with Exchange 2012) and another workstation and the same thing, so I know I am missing something. Why OWA works (internally) and not Outlook 2007. I have read on Microsoft website and it was my understanding that a self-signed certificate will work for internal use, but then I read elsewhere you MUST have a 3rd party certificate a UCC certificate and I understand that you need it for external clients on the Internet and mobile but do you need it internally Intranet?

Oh BTW, in case it makes any difference the workstations are running Windows XP w/SP3 and Office 2007 with SP3 also. I have read thru most of the treads here and see nothing related to my problem.

Any help in pointing me in the right direction is greatly appreciated. I have been at this for almost two weeks. I feel like I have taken a crash course on everything I ever wanted to know about Exchange 2013 LOL!!! Please let me know if you need any additional information.

Thanks.