By default, the "Used Cached Exchnage Mode" option is checked.  Try unchecking it and see what happens. 

Pardon my ignorance!  But could you tell me where I"ll find that?

When you specified the name of the Server in the wizard, it was the box directly beneath that name.

That's part of my problem.  I can't seem to get to the Wizard.  I can't even get the application to open.  It tells me that it's not an off-line folder so it won't open.  I can go into Search and find it there but it still won't let it open.  I can get to Properties from Search but I don't see an opportunity to uncheck anything about cached. 

Any other thoughts? 

Go into the Mail Applet in the control panel where you can modify and profile.  The easiest thing to do would be wipe out the current one and start over.

So now I've unchecked the "cached exchange mode" and it did change the situation but I still can get in.  Now when I put in my user name and password, hit OK and wait, the same screen comes back to me without an error message; but it wants me to put my user name and password in again.  It would continue that for forever.  But, if I hit Cancel, it no longer gives me a message about my folder being an online (only) folder.  So something change but it's not fixed. 

Someone at work suggested that I go into Command promt and ping the server to make sure I had a connect and I do.

Any other suggestions?

The ping is only good if your logon name to the computer and server are the same (your Domain account).  Make absolutely sure your logon name and exchange account name are the same.

Do you have a third party firewall running (Norton or Mcafee)?  If so you must configure them to allow traffic on ports 25 and 110.

I will check on the user name and domain issue but I think I'm good there. 

I am running a firewall (McAfee).  Can you explain what it is I need to do?

Run the instructions for Mcafee to allow Port 25 and 110 traffic. Turn it off and see it you can connect, if son you know the firewall is improperly configured.

Also the name and/or address of the Exchnage Server must be correct.  Usually best to connect by Ip Address.

are u sur the username and password is correct ?
ask administrator the exchange server for correct username and password

Thank you so much for all you help. I am now in.  I believe it was the firewall issue.  I had to open a port.  Thanks again!