Oh, and here is a good how-to article from MCPMag.
http://www.mcpmag.com/columns/article.asp?EditorialsID=654
One nice tip from that article that is helpful in troubleshooting HTTP/HTTPS connections:
Hold down CTRL and right-click on the Outlook icon in the system tray, and select Connection...
I had this same problem.
Go into IIS Manager, and open up the properties for the RPC folder in your Default Web Site. On the Directory Security tab, go to Authentication and Access Control and make sure that Integrated Windows Authentication is checked. By default, it's only set to basic...
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