When I start Outlook 2007 (same with Outlook 2010) for the first time (with no profile created) it tries to autodetect the settings for Exchange.
It detects the username and email address. When you click next, it shows a green tick next to "Establish Network Connection", but as soon as it goes to the "Search for Administrator@domain.com.au server settings", it gives an error message:
"The connection to Microsoft Exchange is unavailable. Outlook must be online or connected to complete the action." It worked fine when I manually enter the server address.