4Cruses,
It appears your Outlook profile is corrupted. There are a few ways you may be able to fix this, but configuring a new profile is the surefire way to fix the problem (but if you are not running on an exchange server you will lose all of your information).
In case your email account is not on an Exchange server try this fix:
Run Outlook from a command line with the /cleanprofile switch appended to the command.
To find the correct command line, right click on a shortcut for Outlook and go to Properties. Copy the information in the Target field and Paste it to the command line. If there is already a command option, remove it and add /cleanprofile after the closing quotation mark. (Add a space before /cleanprofile)
For example, go to Start: Run. . and enter something like "C:\Program Files\Microsoft Office\OFFICE11\OUTLOOK.EXE" /cleanprofile .
Then add a new profile. Be sure to check the check box for "Set as default profile". Note: You cannot see this option unless you click on the "Options >>" button.
Let me know if this works for you!