Error code 0x80004005

This problem may occur if a file that the Windows Product Activation (WPA) requires is damaged or missing. This behavior occurs if one or both of the following conditions are true:

• A third-party backup utility or an antivirus program interferes with the installation of Windows XP.
• A file that WPA requires is manually modified.

This is taken from http://support.microsoft.com/kb/914232

This is not related to your Outlook client or email rather your operating System.