Question : Can't open default email folders in Outlook 2007 to connect to Exchange Server 2007?

Greetings,
I am trying to connect to a server running exchanger server 2007 via outlook 2007 rpc over https.  When I configure the email account via the rpc/http settings page in email account settings, everything connects perfectly.  I then try to open outlook 2007 and I get the following error:

Cannot oper your default e-mail folders.  The file C:\.........\outlook.ost cannot be accessed.  You must connect to Microsoft Exchange at least once before you can use your offline folder file.

Please advise!

Answer : Can't open default email folders in Outlook 2007 to connect to Exchange Server 2007?

is outlook also configured to run in cached mode?