If you ever run into issue while attempting to setup Outlook for a user but you run into the following error: "The name could not be resolved. The action could not be completed"

Be sure to check Active Directory replication (Sites and Services). If you notice that you are unsuccessful when manually replicating you more than likely have found your issue. Rebooting the Domain Controller experiencing the replication issues was the fix for me.

[caption id="attachment_653" align="aligncenter" width="404" caption="Replication Error 2108"]<img class="size-full wp-image-653" src="http://localhost/eGroup/wp-content/uploads/2009/04/2.jpg" alt="Replication Error 2108" width="404" height="448" />[/caption]

You might find it helpful for you as well.