New email addresses will not resolve or underline

My email system uses hosted Exchange accounts

When I create a new email and type the email address in it should normally resolve it and underline it but it does not.

When I press send it gives me an error message.
"The operation has failed. The messaging interface has returned an unknown error. If the problem persists, please restart Outlook"

Any ideas?
Thanks
Andrew MorrisAsked:
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nick2253Connect With a Mentor Commented:
I've run into this problem before.  Deleting and recreating the profile in outlook fixed it for us.
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Vasil Michev (MVP)Commented:
First of all, check if there are issues with name resolution in OWA. If it works fine there, simply recreate the Outlook profile and see what happens. Test with safe mode (either type 'Outlook /safe' in the search box or hold the CTRL key while launching Outlook). Check if the address book downloads fine, or switch to using the Global Address Book and see if the issue manifests again.
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