[jasvaran]

Issue: Outlook 2007 not able to connect to exchange server 2003 under local user account to setup email account once Office 2007 SP2 update is applied to your computer.
Solution: There is no such fix solution for this problem at the moment. You can still setup an exchange 2003 email account on your computer if you are logged in as domain user. If you want to setup an exchange email account on outlook 2007 when you are logged in on your computer as local user, then you need to make sure you don’t apply office 2007 SP2 update on your computer.