Cannot Open Outlook on Terminal Server

Windows 2003 R2 SP2 Terminal Server with Outlook 2007 SP2 using Exchange 2007 SP2. User gets the “Cannot start Microsoft Outlook. Cannot open the Outlook window.” error when trying to open Outlook. Seems to be a not so uncommon problem on client machines but not in a Terminal Server environment, so the 'no default gateway on client' and the /resetnavpane thing among others do not apply. On local pc, no problems. Any clues would be appreciated.