Bare with me, as I've only set this up once and with one minor change it worked. Below is what I remember doing.
I installed the latest TAPI software off the IP Office User CD (version 4.2.29), the installation required a reboot. Once I rebooted the installation continued and found the IP Office. It asked me to pick a user and insert the password. Once I did that the installtion completed.
From there I went to Outlook 2007 and tried to dial a contact. The "New Call" window popped up. I selected "Dialing Options". In the "Dialing Options" window, at the bottom I selected "IP Office Phone: Extn" from the "Connect using line" drop down box. (This was my PC modem by default).
Once I did this, I was able to connect to the IPO but my system was not dialing 9 to gain an outside line and it was not dialing my local area code. I went to "Phone and Modem" setting in Control Panel. From there I edited "My Location" settings. I changed local calling to add a dialing prefix for local of "9XXX" (XXX = my area code, my region requires the area code and Windows was stripping it out when it was making local calls even though it was in the contacts phone number in Outlook) For long distance I added "91".
Once I did this I was able to make calls thru Outlook.
I'm not sure if this helps, like I said I didn't have to do much to get it to work. Let me know if I can be any further assistance.
Chuck Hergenroder
ACS - Implement: IP Office
AEC Group