I recently ran into an issue when attempting to configure the CRM 2011 Outlook client on an XP machine that had SP 3 and was running Outlook 2007. I was able to install the CRM Outlook Client but would receive an error when I attempted to Configure it. I previously opened CRM without issue in a Web browser so I was able to rule out connectivity with the CRM server. I tried many things like a complete uninstall of the CRM Outlook Client and re-install, ensuring the user had sufficient rights on the system and network, etc. In the end, I contacted Microsoft Support and after trying some additional steps they hit on the fix.
The issue was related to a mapi.dll and the fix was to rename the mapi32.dll located in the Windows folder to mapi32_old.dll and then run the fixmapi.exe found in the same folder. Once the above steps were completed, I was able to successfully configure the CRM Outlook Client.
I did run into one final challenge after Configuring the Client. Once the CRM Outlook Client successfully completed the Configuration, I was able to see the CRM folders in Outlook but they were not populated with data and the CRM toolbar did not load. I decided to check the add-ins to see if the CRM Outlook Client add-in loaded as expected. To check the add-in I went to Tools, Trust Center, Add-ins and selected the Go button at the bottom of the page. The list of add-ins loaded and I noticed the Microsoft Dynamics CRM add-in was referenced twice and the checkbox for both references was unchecked. I removed the add-in that did not have the “load on startup” or (something similar to that) referenced and checked the box for the remaining add-in. Once that was complete and I closed out of the add-in list, the CRM Outlook Client folders populated and the toolbar loaded as expected.
If you run into this issue, I hope you find this information helpful.