MS Outlook not loading

This happened on a new laptop computer. Office was loaded from the factory. Office stopped working. The user called the factory for help and come to find out it only worked for 90 days as it was not activated. He did not want to but it from them so the factory had him uninstall office. I come on site and load a new copy of office and activated it. Everything works except for outlook. When you open outlook you get the error "Unable to open your default email folders. Count not open the Item.” With a single button saying: Try again. The next error “Would you like to open your default file system folder instead?” Buttons with Y and N. N = exits. Y Unable to start processing services. Could not open the item try again. Then you are in a browser window where you can search for a file or folder, but that is all that appears to work. PST file is 44Meg, test OK and is in the correct location. XP home is up to date, Office is up to date. Spyware cleaned, adware cleaned, no virus found. Any Ideas?
Thanks

 

Have you tried running a repair from the Office CD? I have had a few programs in MS office that like to get bugs when I run the updates here. So far, when ever I repair the install from the CD it fixes the errors I get.

 

uninstall office.. make sure no office trial exists in the add/remove either. If it does, remove that too.
Remove the Office folder from the program files and reinstall office.

 

Did this and it did not work. Will do next idea. Thanks