Cannot setup Outlook 2003 with Exhange 2000?

I recently added some new p.c.'s running Outlook 2003 and am trying to setup mailboxes from my Exchange 2000 server.  On the p.c. it asks me the exchange server name and the mailbox name and completes normally.  However when I go to open Outlook I get the following message:

Unable to open your default email folders.  You must connect to your Microsoft Exchange Server computer with the current profile before you can synchronize your folders with your offline folder file.

I tried disabling the offline folder file and when I do that I get this message:

Unable to Start Microsoft Outlook.  Unable to open the Microsoft Outlook window.  The set of folders could not be opened.