Lets see if it is a problem within your profile by creating a new profile and seeing if it works with it:
Open Control Panel
Double Click on 'Mail'
Click Show Profiles
Click Add.. and create a new profile with a new name and details
Now choose the radial to allow it choose which profile to use (DO NOT touch your existing profile as we don't want to lose any of it)
Now open Outlook on the new profile and see if it works or not.
This will limit it down to see whether we have to fix your outlook profile or the program itself.