Red X appears over Outlook icon in taskbar

[newtoitall]

I have a user that gets a RED X through Outlook icon in taskbar when dragging and dropping emails from inbox into other personal folders. The main problem is that the egg timer comes on and remains on for a good 30, which restricts the user from performing any tasks with Outlook.

What does the red X indicate and how can I stop this occurring?

BTW the red X and egg timer also appears even when the user is away from PC. Weird

 

[kzn]

Need more information

1. Is the person able to receive email?
2. Does it say connected? or is it in offline mode?
3. Are you able to resolve the name of the exchange server from the command prompt?
4. Have you had a look at your host file(if you are using one)?

You normally get this when it is not connected.

 

[newtoitall]

Sorry, i must add that a red '!' is displayed over outlook icon in task bar not 'x'.

To answer questions
1. The person is able to receive email
2. He is aways online
3. Haven't been able to check, as problem only happens sometimes, apparently more at the end of the day.
4. Not sure if PC is using host file, what should I be looking for.