This problem may be caused by removing MSN Messenger from your system or installing a number different registry hacks to do the same thing.
Putting Messenger back could allow Outlook to function properly again, or you can disable Messenger in the Outlook Tools Panel.
It could also be caused by using Word as your E-Mail editor.
Unfortunately, I am experiencing a delay of around 60 seconds while attempting to connect to my Hotmail accounts and "not using any of the above."
Outlook has been removed from my system. :)
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Windows Service Configurations!
Includes explanations of each service and advice on which services you can safely disable.